That was supposed to be the case when WW2OL...now BattleGround Europe came out. They were supposed to set it up with theaters all over the world with players having several different online "personas" in order to play as Soviet, German, English, French, American, Japanese, etc... in order to have fun. Too bad it didn't happen the way they wanted.
So how did it work out? I don't follow this stuff in the OLG world. If it turned into a nationist-enmity hatefest, so much the better for spirited competition. I suspect, though, it went a bit limp.