I personally think location domains should be kept for sites related directly to that location. For example, .co.uk domains should have their site origin in the UK, and this new .co should remain for sites located in, or about Columbia. Countries or regions only ever release their domains for worldwide use to try and make money. Look at .tk as a great example of this.

We already have .com, .net, .org, .biz, .mobi, .tv, .info.. etc as first level domains for everyone to use, with some of them designed for more specific usage such as .tv meant for video and broadcast related site.

In the UK and Europe we also have access to .co.uk which is very popular, and also .org.uk, .me.uk, .uk.com, .eu.com, .eu, and more recently .es which is probably originally for Spain(?) and .be, .in and .me

I've known about the release of this domain suffix for some time and don't personally see the worth of it. The problem is that often people will misspell a URL when typing it in and if a different site exists at the .co domain to one at the .com domain then a long running .com might start to suffer if people keep going to the wrong .co domain, or people might keep going to the wrong one without realising. The reality is that most site owners will always want a .com domain as it is the highest value url to own for any site. And if they can't get the .com then they will more likely register the ,net, .org or their country specific one, such as.co.uk or .de which are both very well used online, but I think that is more because a large majority of web designers/developers/companies are UK or German based.

I'm not sure I will be using a .co domain, but I suppose you never know. If you really want a specific domain but can't get the regular ones then it might be the only option.