If they're going to do it at all, and limit cruelty in the equation as much as possible, it should be very limited to directly comparable and competing products (Windows vs MacOS; Google Search vs Bing; consumer desktop operating systems and consumer search as narrow categories), rather than the industry broadly. Most people have a narrow labor specialization and spend their work years building up expertise and reputation in an industry. Any denial of work potential and opportunity that targets an entire industry is akin to labor cruelty and should be viewed as a human rights violation.
Biologist/chemist working on novel drugs - pretty limited field.
Developer at Amazon - Amazon does a bit of everything, I bet their legal team would prefer you didn't work elsewhere.
As noted elsewhere, it's not even so much about an NDA/non-compete is enforceable - just the threat of legal action is enough to stop employees moving or stop other employers hiring people.
I imagine these people have money, so what's making potentially an extra 200k? You make that in a year.
These are not typical people.
Would you sign a contract that says I have the right to point a gun at you at all times, with only my unofficial assurances that I won't pull the trigger?