I’ll note that for real businesses this is just a thought excercise, but it’s one I keep coming back to. What if some less reasonable entity attempted to regulate in this way?
Welcome to our world :)
> The whole internet dances to the US tune, legally.
You've got that almost exactly backwards. The US approach has required almost no dancing at all to the US tune. That's precisely why ~4 billion people can use the Internet from 195 nations, all with dramatically varying laws. They're not adopting US law to use the Internet. That's why the Chinese have been able to implement their unique approach and still use the Internet (restricted to fit their tolerances at a government level).
You very specifically do not have to dance to US legal tunes to use the Internet. Even when it comes to IP laws, you do not have to dance to the US tune (Europe has varied widely from the US on such, eg as it relates to piracy, and yet the Internet keeps on regardless).
Same thing with the internet: the US was the biggest developed country, it had a large, stable, rich internal market, it had big universities churning out graduates (many of them coming from other countries!), it was the inventor of many tech things that make up the internet. So of course a less regulated internet would benefit it since its companies were best positioned to take advantage.
My guestion for the next 30-40 years: unless China screws up badly, it will overtake the US. It's simple math: a moderately rich Chinese population will overtake the US one, as it outnumbers it 4 to 1 or so. Will the US be as benevolent and open when it's the underdog?
Based on some reactions I've seen here, regarding the EU and the GDPR and also on reading a ton of comments about China, I'm not so convinced.
TL;DR: The US is reasonable, for a super power, but it didn't do it out of the goodness of its heart.