We are using Argo for our xhr search traffic as it makes more sense than setting up different servers/vms in parts of the world. Each request is only 1kb max.

But I would not use it for static assets. For this we use Bunny edge storage to provide faster response times at very reasonable prices.

I agree, and I would also put forward that most people don't understand what peering is or how it works. When people (usually developers who are not network engineers and have not worked at that level of the stack) talk about "egress", they mean delivering bits from your network (cloud or otherwise) to any other network on the internet. How can you put just one price on delivering a bit either to a host within the same datacenter or one on the opposite side of the planet? Physics still mean that one is more expensive than the other.

The existence of the world wide web has tricked us into thinking that sending traffic anywhere is/should be the same, but of course it is not. So while the price you (a cloud customer) pay for egress pricing is (often) indiscriminate on where that traffic is going, using common sense, we can understand that some traffic is more expensive than others, and the price we pay is a blended price with that aspect "baked in" or "priced in".

Transit is also the same price regardless of distance.

USPS manages to do it.

Like to see the data on that! Would it really be cheaper if they charged granular by cost like old telephone plans where they list each country and c/min + connection charge?

The big clouds already do this by continent.