After a comment that a reader's iTunes had switched her to Denmark, I did a quick search and found that it's not an isolated problem. From The Unofficial Mac Weblog:
iTunes 7.0.2 thinks I've moved to France (and they have no TV Shows there!) - The Unofficial Apple Weblog (TUAW):
"A number of people, myself included, have noticed that after or shortly following the upgrade to iTunes 7.0.2, their default country was changed for the iTunes Store. The first sign for many folks that something was amiss was the missing TV Shows, Movies, Audiobooks and Music Videos in the sidebar nav. Resolving this little glitch is super easy of course... just scroll down to the bottom of the iTunes Store home page and select the country you actually reside in.
I discovered this morning that iTunes thought I lived in France. I've never been to France. I look awful in a beret. I don't even speak French. Although I hear Paris is lovely in the Springtime.
It would be nice to know if this glitch is directly related to iTunes 7.0.2 or if it's the result of other iTunes Store renovations that are being done, but in the end all that really matters is that you can always go home again, and with little effort.If you've discovered any other oddities after iTunes 7.0.2, let us know!
Update: We've got first hand confirmation now that this hiccup is not specific to iTunes 7.0.2. Users who haven't updated yet are experiencing the same trip 'round the world."
Also documented on MacFixIt:
Several readers have reported an issue where, after updating to iTunes 7.0.2, the preferred language for the iTunes Store is switched to one other than originally specified by the user.
So we're not crazy. Well, not with regard to that.