It was removed because adding an EU IP helps almost nobody and does not lower your ping. Geographically and mathematically it guarantees a higher latency for anyone connecting through that node. The way it works is that you must connect "to EU first" and then your traffic is routed to the US server. So it was a waste of resources and more or less just a test when we tried the eu proxy.
The real plan is to have an actual EU version of Loka/Duels where you would need to explicitly connect to eu.lokamc.com, but then you would not have access to the US survival server or US duels server. There is a mod that allows passing players back and forth between a US/EU proxy, but it would need to be installed by players in order to work.
Indeed we do not have the playerbase to have both a US and an EU version of the survival Loka, but we would like to one day open up an EU node for people to optionally choose for duels. There will still be concerns about a division of the playerbase however, and how ranked would also work is subject to debate.