The USA has already proven to be the best country for Melee, hands down.
There are a handful of Europe smashers than can compete with top US competition. Nihonjin and EK come to mind, but they both quit didn't they? The problem is that outside of those handful of people, the rest of Europe simply cannot compete. As I recall Captain Jack came over to Europe in 2006 and started taking most of the tournaments there. The Captain Jack that was beaten by Ken, Azen, and a slew of other japanese smashers that got stomped by tier 2 US players. The fact is that Tier 1 Europe smashers are about as good as Tier 1 US smashers, but then Tier 2 Europe smashers are like our Tier 4 smashers. US players have already gone to europe. GAWes (Our Savior Marth) went and started making top 3 at all the UK tournaments. GAWes is good, but he's never even played outside of Georgia in the US, a relatively weak smash state compared to the big 5 regions (New York, California, Texas, MD/VA, and Florida).
If Armada is beating people like Nihonjin and EK then I give him mad props, but I haven't really heard of it. Plus not to mention Peach is SIGNIFICANTLY better in PAL version thanks to the fact she can meteor cancel marth's dair, kill Fox faster, not always die from a falco dair, and actually live past 84% against fox's up smash and up air.
There are good players in all the major smash regions of the world, but the US has just far more, far better players.