outlaw any use of methods to which clients are discriminated against, including using remote attestation to do so. Similar language has been used in the DMCA legislation to similar effects (aka, software circumvention).
While there is a need for complex criteria, there is also a need for something simple to base enforcement on.
The simple criteria should be something like having more than some number of customers/users gets you automatic scrutiny and forces you to have things like customer service people along with government required metrics (10K-type things) and some larger number of customers/users forces you to break up.
It's the uncontrolled aggregations of users and data that are the problem.
Why? Part of what you said is something I already believe in. I think it's only a matter of time before the international network we enjoyed in the early days of the internet is destroyed by governments and their eternal struggle to impose their own incompatible laws on it. One day the internet will fracture into several regional networks with well delimited and filtered borders.
I for one am glad to have known the internet. It was truly one of the most wonderful creations of humanity.