I don't think that's really the sell. The sell is that hosting within the US is the only protection you can have from NSA, since they have a total, unencumbered free hand when it comes to services hosted outside the US, without even a legal formalism to stop them. Like all national SIGINT agencies, breaking into everything outside their own borders is literally their chartered job.
This is protection against the NSA. My point is that within the United States, there are at least some legal and procedural protections (however flimsy you think they are) which do not apply to a service hosted abroad.