Hello,
it's a minor problem for German language users.
I had to change the database format for "flag_name" from utf8_bin to utf8_unicode_ci, because "Österreich" (Austria) got to the end of the country list and nobody found it. With utf8_unicode_ci Ö is treated as O and therefore right ordered.
As a feature request it would be nice to define a number of let's say five countries which will be listed on the first page, additional to the default flag.