Consoles can do that too but apparently we aren't good enough :/ good old laggy p2p. Its a must for regional p2p I hate playing people in US when I'm in UK. I remember when gears2 came out. Always US host but they denied it being laggy because apparently gears 2 had dservers. Ooohhhh ignorance is bliss.
consoles can do it, ps3 might never used one ...not keen on the parent company, not open to debate it's a personal opinion.
microsoft doesn't as they use their matchmaking system, it essentially takes your meta rating and the games personal rating of your performance and keeps you matched up with people within that rating level. the ability to choose servers would break the illusion. whether you like or loath the idea it does it's job pretty well ensuring your never really in the wrong place.
but like i said server lists would ruin the illusion allowing you to see first hand that not all the servers are available to you when your mates are joining one you can't even see. arranged games like that fall outside of the matchmaking system anyway and it's your own fault for entering games with people who outclass you based on invitation.
that said matchmaking doesn't quite like me as i play so sporadically that it has no real idea how to meta rate me. it also punishes people who cheat to boost scores as they start to find themselves playing people harder and harder to beat without cheating....and cheaters get reoprted and removed from live. paid for multiplayer has benefits like that. on ps3 you'd just keep making new accounts til your console is hardlocked out (which may not even happen as MP is entirely upto the devs not sony)