The Developers don't choose region protection, it's the publishers ^^
Not just the publishers microsoft dillibretley made the xbox to be region restricted the PS3 is region free
No.
There is a fair amount of X360 Releases that are Region Free.
Its just that DKS isn't one of them.
One reason could be that other future Publishers/Distributors may not like that a game is Region Free, as it could decrease sales in a certain Region, due to people importing thus equaling less income.