"Regions" is definitely an overloaded term and I'm not surprised by your remarks at all.
Hopefully I can help out with the openstack CLI bits at least. To create regions in keystone you need to use v3 of the API, this may involve changing up the bits of info you use to authenticate (Like adding v3 at the end of your auth URL, and adding domain information) A quick example: $ env | grep OS OS_PROJECT_DOMAIN_ID=default OS_REGION_NAME=RegionOne OS_USER_DOMAIN_ID=default OS_PROJECT_NAME=admin OS_IDENTITY_API_VERSION=3 OS_PASSWORD=openstack OS_AUTH_URL=http://172.16.240.201:5000/v3 OS_USERNAME=admin OS_TENANT_NAME=admin OS_VOLUME_API_VERSION=2 $ openstack region list +-----------+---------------+-------------+ | Region | Parent Region | Description | +-----------+---------------+-------------+ | RegionOne | None | | +-----------+---------------+-------------+ $ openstack region create regionTwo +---------------+-----------+ | Field | Value | +---------------+-----------+ | description | | | enabled | True | | parent_region | None | | region | regionTwo | +---------------+-----------+ $ openstack region list +-----------+---------------+-------------+ | Region | Parent Region | Description | +-----------+---------------+-------------+ | RegionOne | None | | | regionTwo | None | | +-----------+---------------+-------------+
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