But Netflix also has an agreement with whoever owns distribution rights in the other country though... that's why the VPN trick works. Just let me pay extra for the other country, what would be the problem there?
Your suggestion makes "common sense" but probably would cause legal issues.
Suppose you are Canadian. Netflix has permission to sell Americans "Media Package A" and Canadians "Media Package B". They don't have permission to sell Canadians "Media Package A". You are saying "just let me buy both" but Netflix does not have permission from media companies to sell you both.
I would assume the content owners are demanding the Netflix to stop the VPN trick. I would assume the distributors in other countries are telling content owners they will not pay a certain price if Netflix is allowing people to use VPNs.
Suppose you are Canadian. Netflix has permission to sell Americans "Media Package A" and Canadians "Media Package B". They don't have permission to sell Canadians "Media Package A". You are saying "just let me buy both" but Netflix does not have permission from media companies to sell you both.