Of course it doesn't cover the issue of foreign state psyop operations but the fact that enforcing laws against organized crime and adversary state actors is hard isn't specific to AI.
The fact that a small black market exists doesn't mean regulating the mainstream market doesn't matters.
Also, most people like you fail to realizes that the EU only has mandate from the member states to regulate the economy. The EU has no business dealing with people using SDXL finetunes on RTX cards in their garage.
I agree in theory, but all it takes is one deepfake video to cause the kinds of trouble the regulations are designed to stop, right?
The general use or creation of deepfake for porn, harassment, or election manipulation, is outside of what the EU can regulate as an institution, it is the responsibility of member states. (The same way the EU can impose rules on platform with respect to copyright violations, but cannot enact rules against piracy in general, these are always made by member states).