I feel like the whole time this was being argued and passed, everyone in power just considered the internet to be the major social media sites and never considered that a single person or smaller group will run a site.
IMO I think that you're going to get two groups of poeple emerge from this. One group will just shut down their sites to avoid running a fowl of the rules and the other group will go the "go fuck yourself" route and continue to host anonymously.
There's only 13 provisions that apply to sites with less than 7 million users (10% of the UK population).
7 of those are basically having an inbox where people can make a complaint and there is a process to deal with complaints.
1 is having a 'report' button for users.
2 say you will provide a 'terms of service'
1 says you will remove accounts if you think they're run by terrorists.
The OP is blowing this out of proportion.