Region coding is just plain stupid. I'm gonna drag out that old worn argument that can also be applied to most of the related subjects (like copy protection and stuff like that)
This stops all consumers using a specific item in a certain way (playing a DVD in a different region than the one for which it is intended in this case). However...
No protection is perfect
People who want to do said prevented thing, and have the right sort of knowledge, will always (well, ok, make that "almost always" if you wish) find a way around the protection eventually. This method of going around the barriers in place will usually be quickly circulated, and soon every man and his dog (you'd be surprised just how many of the illegally copied CDs you find in street markets are made by dogs) knows you can just get a region free DVD player, or just get a supposedly "regular" one (locked to one region) and perform some arcane sequence of actions that causes it to become region free.
So... What was the point in the first place? People who want to will find a way around, then import as they like, whilst those who don't care will simply stick to the DVDs available in their region anyway. All it did was waste some time for eeryone involved- the original company for imposing that protection in the first place, the hackers who worked out how to get around the problem, and then for everyone who applies this fix, and then the situation calms down until the next "innovation" in the protection comes along and it all starts again.
ludicrous.