Im sure it could but I would prefer that waypoints had an additional field that was auto field with the state or province based on coordinates. Current I am starting my waypoints with the two letter abbreviation of the state where the are located and I find this very helpful with organization and finding waypoints. Would the state province not be better than a smart folder on distance. If not maybe we could get both.
The "geographic" filter is a great idea and using a pre-defined "pick-list" of geo-political regions might make it easier to create a world-wide list (although geo-political boundaries do seem to change more frequently these days).