Which of the specific points the GP mentioned do you think is about how they handle user data? As far as I can see, every one of them is administrative in nature.
They're not saying they're going to be tracking everyone in shady ways. They're not saying they're going to be storing unencrypted details and unhashed passwords. They're not saying they're going to be forwarding your every secret to a Sith lord.
They are saying they don't have time to respond to a legal DoS if someone sends them a letter obviously written in bad faith, and they are saying they don't have the resources for their startup to police every major service they depend on. I imagine almost any startup would be in the same position.
As it happens, this person also seems to have some common misunderstandings about their obligations and may be over-estimating the actual risks. That also happens when you write this kind of law, and as we see here, the chilling effect is real.