It is very easy to block VPN, Tor and other technologies. These can be in fact criminalised the same way drugs are. Possession of a VPN on your device could give you a criminal record.
The US lost the crypto wars, EU lost the piracy wars once, and they will lose again.
Of course the EU can go full police state, but at that point I hope the regular citizens pushes back.
The goal is to raise the cost of enforcement.
Plausible deniability.
Criminalizing something means nothing if the laws can't be enforced. Torrenting copyrighted works is a criminal act, and yet torrenting has never been easier after years of efforts to shut it down from all sides.