I agree with your comments on this, lensman! While I understand and appreciate that is is an "urgent" issue to someone who is anxious to get their new account set-up, it is not in the same class and an issue that is keeping a live site from functioning or email from getting delivered or received.
I also can't help but notice from browsing around the web that Google Checkout has already developed a reputation for being extremely aggressive with it's algorithms for detecting potential fraud. There are many frustrated vendors who report having had Google checkout flag long-time "known good" customers a "potential fraud".
Whether or not this is a good or a bad thing probably depends quite a bit on your own priorities and your own loss experience. Certainly, it can be frustrating to both buyer and seller when it interferes with completing a sale that would otherwise be "good", but I don't doubt there are circumstances where a merchant is willing to take that risk in order to protect themselves.
In my experience, being U.S. based and providing accurate and correct information while using a major credit card issued in my name with the same billing address and phone credentials as I provide the vendor at purchase time, I have had no problems.
The reality of fraud from certain locales, and the difficulty in collecting defaulted payments from some areas, is likely to always present special challenges to online sales, and any information presented at purchase time that "fails" heuristic scrutiny by an automated system is likely to result in some false positives. I think this is a reality of doing business online, and sometime transactions are, for one reason or another, either going to take longer to process or be rejected out of hand because of perceived risk.