@Brodie Hi Brodie,
Thank you for your reply. I am not an engineer and it might sound funny, but I thought of possible work around. Maybe it won't be difficult to implement:
If only it was possible to set shipping for digital downloads as we do for physical items.
Then, by specifying countries where we "ship", we would autimatically exclude "other" countries. Shipping can be set as "free". I think it is the way it works with physical items.
People who don't need this option will never use it, so there is no confusion. Customers will see "free shipping" on the order, which will make sense too, because there is no shipping involved. (and they like free stuff!) 
Right now it is not possible to block countries within Weebly from purchasing a digital file. The shipping requirements do not come into play since you are not shipping anything.
You can restrict, any country, from making purchases on your site, in your Paypal account. However, using this method will block the country selected from buying all products on your site, not just digital files.
If you don't mind and wish to restrict the EU from buying your physical goods as well. Then this option will work for you.
To get started log into Paypal.com and click 'Profile' at the top. In the new window click "My Selling Tools", then scroll down to the section titled, "Getting Paid and Managing my Risk". In this section click update next to, "Managing Risk and Fraud". You will be taken to a new window, scroll down and click the 'edit' button. The next screen will look like this and will allow you to add countries that you want to restrict or block altogether.
Add all the EU countries to the right side. After you've completed this area, scroll down and click 'Decline'; doing so will block all purchases from these countries on your entire site. Finish by clicking the save button. The change will go into effect immediately.
We are speaking with the developers on resolving this issue completely. So that you don't have to block any country if you don't want to. We appreciate you adding it to the vote on features section.
