Unable to filter some billing address fields in checkout

I’m following these instructions
http://docs.woothemes.com/document/tutorial-customising-checkout-fields-using-actions-and-filters/
This is the my product page.
http://4donovan.info/shop/4donovan-benefit-album/
I’m serving downloads with PayPal as my gateway. I’d like the the country, city, state and postcode fields visible, but not required.
I’ve been able to remove fields. I can make ‘billing_country’ optional, but not state, city and postcode. I CAN make state, city and postcode optional IF I remove the country field all together.
Essentially, I’d like to keep all fields but only require first name and email.
Is this a bug or is there a reason for this?

Thank you. (LOVE this plugin)

http://wordpress.org/extend/plugins/woocommerce/