Crypto software has also been legislated in the past and everyone ended up using weak crypto for quite a long time. Looking back, maybe it wasn't that important anyway since most of the web still ran without TLS and you wouldn't read on a weekly basis about password breaches.

If "GPT 4 or higher" would be restricted then a lot of large businesses wouldn't use it, startups/smaller companies wouldn't work on services around that. The common knowledge about it wouldn't be as high as unrestricted.

It's not optimal but maybe good enough for the next few years. Also bringing back the comparison with crypto, maybe in the mean-time everyone involved is better equipped in dealing with all that.