I wouldn't say you're mistaken, but it's a simplification. In the network world, the capability exists to restrict what BGP advertisements are accepted via RPKI/a peer. Internet providers usually don't because the premium is placed on uptime/connectivity.

If tomorrow, everyone said "we don't want IP's from Frankfurt showing up somewhere in Dubai", you'd have a massive technical problem and rearranging to start with but once that was sorted you could geo-lock. IANA and Network providers simply haven't been doing that.

The reason it doesn't happen is Devs/Stakeholders want uptime from ISPs/Networks and not something they can't abstract. Basically its just a status quo much like the entire internet reverse-proxying through CDNs is a status quo. It wasn't always like that, and it may not always be like that in the future - just depends which way the winds blow over time.

> we don't want IP's from Frankfurt showing up somewhere in Dubai

what do you mean, IPs from Frankfurt?

IP addresses are just IP addresses, they know no geographical boundaries. In RIR DBs you can geolocate them to wherever you want. Which is the entire reason why Geo IP DBs even exist - they triangulate.