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Northwest US. It'd be great because the varied geography of the region could be mirrored in a game while still providing the diversity expected in pokemon (deserts, mountains, forests, fields, sea routes, ect)
I imagine you'd start somewhere on the Olympic peninsula, maybe Port Angeles, Olympic National Forest would be the 'Viridian forest' type area, then you'd work your way down US101 until you hit Olympia, which would be 3rd or 4th gym. Then you'd work your way up I-5, 7th and 8th gym would be in Victoria and Vancouver B.C. Victory Road would go North to Southern Alaska, E4 would be (approximately) in Juneau. Eastern Washington could be full of postgame content.