I think the point that the GP post is making (which I agree with) is not to complain about the burden of complying with local regs, but to point out that consumers in the EU are going to miss out if small companies don't offer their services there due to regulatory concerns.
> I cannot see how that could be a problem.
This is a cost/benefit calculation, but not an easy one. In general a given set of regulations will have both costs to the consumer such as reduced choice and increased prices (due to regulatory costs being passed through), and benefits such as better protection of personal information in this case.
Now, the fact that users in the EU seem to currently be supportive of these regulations suggests that they are willing to pay that cost to get that benefit. And that's their decision!
But consider the scenario where this trend carries on, and startups are increasingly not able to get a toehold due to incredibly high compliance costs. That could stifle the economic development in the EU, and lead to further concentration of power as only large companies can afford to pay the lawyer bills to meet the regulations.