Creating "competing"* services does not solve the problem of how Europeans can continue to use U.S. services if and when they (we) prefer to do so based on technical merit.
I don't think it's a good idea to let the world (and the internet) fragment into ever smaller jurisdictions that can no longer find a way to trade with each other.
We need a legal agreement to sort this out or everyone will be worse off.
* They wouldn't actually have to compete at all if U.S services were banned.