Yep! You put your finger on it.
The defining of regions is a very complex topic that has to weigh so many factors, so we end up spending a lot of time and energy doing our best to do it as well as we can.
It's very subjective, based on subjective valuations.
BUT we've decided that representing diverse regions, communities, and interest groups is important enough that we accept that cost.
There's room for people to disagree about the value of doing this, but for my taste I'm a big supporter of it, as I really like to have that national diversity represented in our legislative institutions.