One can dream, no?
It's a 'nice thought' to have all data and data processing apply locally in Europe, but it also has only very, very marginal benefits.
Just think for a moment: where are the Europeans who are directly harmed because FB has their data in the US under different jurisdiction, whereupon, if the data were all in Luxembourg, their personal outcome would be better?
I'm not even sure that exists.
Were Sven and Francois harmed, distraught and complained to the EU that this data ought to be in Luxembourg in which case they would not have been harmed?
The regulation requires a fair bit of cost and complexity for very little upside and will make it more difficult for companies to operate.
Of the things we don't like about Facebook that the data is in the USA is not the biggest burden.
It's one thing, but not a the most obvious thing.
Google gave up on China. Maybe there's reason to hope.