I think this misses the point, and I think the idea of a "huge surface area for conflict" also misses the point.
In the end, unless an entity is a public benefit corp or a not-for-profit, the literal sole goal is to profit. "Reducing surface area for conflict" is one of many steps on the way to the goal for profit, and if cutting out Colorado is less painful to profits than disclosing salaries and opening up that conflict surface, then that's naturally what will happen.
Colorado doesn't really need to apologize. They made a bet that their state was relevant to remote work, and they lost that bet for some number of companies (I can think of plenty with no Colorado carve-outs and with specific disclosures due to Colorado despite not having a presence in the state, so clearly some firms think the talent pool is worthwhile), and that's to be expected given Colorado isn't one of the most populous states in the country. That calculus quickly changes for many more companies if it turns out the population of remote talent in Colorado is trending upward and worth tapping into, or if California etc pass similar legislation.