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First of all, Spain/Portugal has a lot of Culture, with a long ass history thats still alive today in the form of Basque. Basque, Phoenician, Greek, Roman, Celt, French, Jewish and Arabian/North African bits of culture exist across the landscape, making it perfect for them to do a more Mediterreanen then Central/Western European Pokemon Region.
Second, it would be a clever way to connect back to Kalos and give a lot fans what they want, Japanese fans a Spainish region, connection to France/Kalos for the rest, and justify a mix of greco roman AND, if they are not doing mexico/texas etc, Mayan/Aztec/Incan inspired legendaries. I mean it would suck but they could do where centuries ago explorers brought back with them mysterious tombs that turn out to host four powerful legendary pokemon based on the Greek Winds or Great Gods of Aztec Myths. Then maybe could do a North Spain/South French region based more on Basque lore if they cant fit it in elsewhere.
3. Masuda could have easily been there for research and lied why he was there. If Japs visit there a lot makes sense since post Classical Era the games focus on Internationalism, with Regions based on places with a lot of foot traffic like New York City, Northern France, Hawaii.
4. Also, it explains some of the Spainish references in SM like the Baile form of Oricorio, if we assume the other three represent a set of regions like the Pom Pom for mainland United States or maybe Kalos, the Ghost type for Japan and Psychic type for Pacific Islands like Hawaii Islands if not the U.S. in general. I say this as Baile is from the Spanish word to Dance not French, red and black are more common in certain types of Hispanic dances, and the type is fire perhaps symbolic of how rugged and hot Spain is.
5. To extend that point, it seems to me they might be bouncing back now between America and Europe since the first four gens were heavily based on Japan.
