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I've set my PIA to automatic and it will be based on ping, which typically means I get London or Southampton. This works fine, and nothing I access is guessing that I'm in the USA or anything (my work VPN does this, it surfaces in SF and everything seems to know this).
Most services are just using the MaxMind GeoIP database: https://www.maxmind.com/en/locate-my-ip-address
If I explicitly want to surface elsewhere, then I change from Automatic to a specific place.
It's been fine.
Yeah, I've gone from "VPN for most things" to "VPN for nearly all things".
The only things that I don't yet VPN are video and music via Netflix and Google Play.