I can fully see them eventually making it illegal and enforcing a new encrypted protocol to which they have the keys for. Obviously, such a setup would leak, but the people who make these rules think they are flawless and omniscient and think they could keep such keys private into perpetuity. They also assume that future government won't be even more totalitarian than them.

There is nothing magical about western “democracies”. Similar law was already passed in the UK.

To stop laws like this, the power needs to return to the people. That means, dismantling the EU and implementing direct democracy.

They will not block HTTPS. They will go after every commecial provider who does not give access to the private messages of their users.

It is possible, and even in a democratic way. When large enough majority, defined in constitution, votes for destruction of democratic constitution, it is still a democratic process. It's a known bug of the usual democratic systems.