Cool! Contrary to some of the other posters I think this definitely counts as deanonymization, or at least is close enough. How anonymous would satoshi be today if we had his location to within 250 miles? Repeated applications of this attack (maybe disguised somehow?) could let you track someone’s travel over time, and it is usually only takes 4-5 zip code sized locations to uniquely identify someone.
The method that both Apple and Cloudflare use in their own privacy software (iCloud Private Relay for apple, WARP for Cloudflare) is specifically based on the idea that your region is not information that reveals your identity. If you enable Apple Private Relay, your origin IP will be obscured but the IP your traffic is routed through will be in the same country -- same principle.
https://www.apple.com/icloud/docs/iCloud_Private_Relay_Overv...
This attack is academically interesting and novel but it's not "deanonymization".