Should be more limited on who you can pick imo. We are trying to put up a Finns only team, but with the current amount of players the quality will be nowhere near as good as some others. If the country can already support one, two or even three teams, why would it be possible to merge that country with even more? Swedes can easily come up with two teams, finns one, danes one, germans three and so on. None of these teams need more than one or two supporting members from another country.
Imo it shouldn't be about playing with your clanmates either (looking at Bagge here), but just having fun under the same flag for once.