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This is why it federates, you can find offers from other instances that are further away just fine. However to make curation easier and lower the server load the admin can limit the geographic distance of federation so that for example it doesn't have to federate thousands of posts from Japan that few of the users of their location specific instance are likely interested in.
I really don't understand why that is so hard to grasp conceptually and this is definitly good design.
That is quite clear from your insistence that you know what users want.
They want local listings and not commercial sellers spamming them with ads yes.