> where German language websites advertising in German, to Germans, accepting Euros, and shipping to German addresses, is somehow not considered to be "doing business" in Germany simply because their offices and servers happen to be hosted in the US
You're saying it like it's a bad thing. If US has better laws than Germany and businesses serving Germans want to choose that jurisdiction because of it, it's "competition", not a "loophole". Otherwise another "loophole" we could find is that some Germans, seeking lower taxes and high standards of living, and more beneficial laws, may just move to US altogether, thus depriving German state of much needed tax income and stopping being subjects to German laws. We wouldn't want them to plug that "loophole", do we?