There should not be a scenario where a company "beats" society.
As for the statements on encroachment or protections: this is about public data, not about private data or secrets.
The argument made in court is about research facilities due to the outsized impact X can make. You want to play in someone else's country, you'll have to follow their rules. This works the other way around as well, if a German company were to host their data in the US, they would have to accept that the government can snoop on that data whenever they want since the US does not protect German citizens. (and as such, privacy laws in Germany and in the EU since around 1995 do not allow private data to be transferred by default)
Something more countries might want to do is protect citizens from large corporations. They are not your friends.
It seems like that phrase "democracy" means different things to different people, depending on where they are from.
I don't know in what country you live, but this was not exactly some hidden issue, in almost all member states this was a local issue and had local news coverage as well.
The only way someone would not have been aware is if they spent none of their time on any local or global reports. But in those cases, everything is going to be something they are unaware of and we'd be talking about people who are essentially disconnecting themselves from society. Everyone else would have heard about it multiple times since even local elections made a point of mentioning it, and election turnout is high, even if you don't participate yourself for some reason, it would be really hard to not have talked to anyone who did.
And X is not just any company, it has high influence potential on society. And Musk has already openly tried to influence elections here.
Another way to look at it is that the people have a right to the data.
Without paying, usually.