Games also aren't in the same league as a social media attempting regulatory caputure. You'll find some surprisingly high production value games in asia that chooses to never release outside of Asia. Maybe not even outside of its domestic country of origin.
You definitely can skip some markets and manage a successful game. The other caveat is that gamers will still find the game if they hear about it enough. They get worse ping but very few barriers from buying a game not officially supported in your region.
>I have little doubt that much of the reason behind China's regulations is good old-fashioned protectionism
It mostly is, if we're being honest. It's still a big Asian factor, despite it being a dying western sentiment to simply focus on the domestic businesses over the foreign powers. Back to the above examples, there are some Japanese only games that in fact go out of their way to region lock out overseas audiences for various reasons.