Why do we say "That's me." I am here, not there-faraway.?

Answer 1

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"That" refers to something which was talked about immediately before the reply. For example, "May I speak with John Doe?" ... "That's me." The sentence doesn't stand on its own; it's the answer to a question.

"This" usually refers to something that comes after. "This is how I am: generous to a fault." Such a sentence can stand on its own.

Answer 2

Well you could say This is me, except you would sound like Woody Allen. Maybe your problem is you are anti-Semitic?

Answer 3

that is used to refer to what was just shown or talked about. It is by definition not this, because someone else said it, not me. this is proximate, that is distal. Which you choose depends on how you look at location, as here or there. Self is here, other is there, is probably the most common way of looking at things.

Answer 4

"that" is not the same as "there"

"That" can be referring to a photo, a description, etc... not just a location.