I believe they have that as an option over at vdiplomacy.com (vdiplomacy.net also works.)

Makes no sense if you can't have any diplomatic conversation beforehand. Also makes it very hard to change one's mind where standardized unit placement makes it a relatively equal bet in all directions. It could end up shaping a game through a pre-1901 decision rather than through an actual battle and skillful tactics.

Yeah ... but that variant sure helps if you keep drawing Italy all the time. Italy with 2 (or even 3) fleets plays a lot stronger!

A Variant called Winter 1900 deals with this. According to some players though, England seems the most disadvantaged by this rule

I played Winter 1900 on playdiplomacy.com a couple times. Definitely added a bit more to the game, don't care to think about who it benefits more or not.

Hello Russia with north coast fleet...

yeah, I agree. There ought to be a negotiations phase before building the unit. However, I do not agree that such option would make the game dull or being shaped just after the commencement. Player will not know how other will act and what they will build. Thus, after the building phase they will have adjust their policies and strategies. Imagine Turkey with 3 fleets: can go for Austria or Itally, or set a stage for Russian campaign after building the land units. I believe such possibilities creat more options, more various alliances than the current static classical game.

And of course, the first phase will make some weaker, some stronger. But its all about decisions and taking the responsibilities of them. If Turkey decide to build 3 fleets, it will be his choice, by risking that Russia will build 3 land units and move with full force south. On the other hand, this will make place for UK in the north.

If Russia builds all armies and Turkey builds all fleets, all it takes is Ank-Arm for Turkey to shut down an offensive.

As alderian said, vdiplomacy.net has this variant concept as a playable variant. There is a lot of stuff going on over there, including many different maps for as few as 2 players to as many as 35. Have fun.

Ever since I've read over the history of Diplomacy, and all the different variations they tried (Switzerland passable!), I can't help but have respect for the sheer balance of the original boardgame.

I like variants of maps they're all flawed in one way or another. And if it comes to the Standard map, nothing beats the original setup.