Hi,
I am also looking into the same issue and agree that a ccTLD is the ideal solution, but I am also aware of potential problems that can bring in a different area. My experience is only with Germany and I can only speak for that country, but it is likely that the same applies elsewhere.
The minute you set up a .de domain, you come under German taxation rules - ie. you become liable to pay tax in Germany on all your income from that country. You also come under all other relevant German laws. In our case we offer language travel to the UK and we would need to set up a protection scheme as required in Germany to protect travellers' money in the case of our going bankrupt. This alone is a very complicated scheme and failure to get it right can lead to nasty consequences!
Large companies with a team of international lawyers behind them can no doubt deal with all that ccTLD involves. Smaller companies just won't have the resources but they need to treat this issue with care.
