@b77 I agree with you that it should not be buried in the preferences, especially considering there are several great selection options as you listed in your mock-up. "Current artboard, current layer, current selection, viewing area, are all great options for this. If they are easily accessible, I would use each of them at different times in my work, knowing now that they are available/could be available.
Sometimes the select list feels a little cumbersome and lengthy. There are certain select options I use a lot more than others.
Would it also make sense to have the select options available at the top right? Just throwing the idea out there.