> Each state can choose to be as restrictive as they like in their laws, and each startup can chose to invest in compliance on a wide scale or in the narrow scale as they'd like.

There's a special hell that exists where one state mandates records must be held for at least seven years and another mandates deletion at five. When the two states border one another and you may not have home addresses, how do you determine how to comply for a given user?

You're absolutely right, in every way, that tech companies have brought this regulatory backlash on themselves. Yet, it might still be worth considering the potential costs.