Open Stack

"Regions" is definitely an overloaded term and I'm not surprised by your
remarks at all.

Hopefully I can help out with the openstack CLI bits at least. To create
regions in keystone you need to use v3 of the API, this may involve
changing up the bits of info you use to authenticate (Like adding v3 at the
end of your auth URL, and adding domain information)

A quick example:
$ env | grep OS
OS_PROJECT_DOMAIN_ID=default
OS_REGION_NAME=RegionOne
OS_USER_DOMAIN_ID=default
OS_PROJECT_NAME=admin
OS_IDENTITY_API_VERSION=3
OS_PASSWORD=openstack
OS_AUTH_URL=http://172.16.240.201:5000/v3
OS_USERNAME=admin
OS_TENANT_NAME=admin
OS_VOLUME_API_VERSION=2

$ openstack region list
+-----------+---------------+-------------+
| Region    | Parent Region | Description |
+-----------+---------------+-------------+
| RegionOne | None          |             |
+-----------+---------------+-------------+

$ openstack region create regionTwo
+---------------+-----------+
| Field         | Value     |
+---------------+-----------+
| description   |           |
| enabled       | True      |
| parent_region | None      |
| region        | regionTwo |
+---------------+-----------+

$ openstack region list
+-----------+---------------+-------------+
| Region    | Parent Region | Description |
+-----------+---------------+-------------+
| RegionOne | None          |             |
| regionTwo | None          |             |
+-----------+---------------+-------------+
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