I still don't get how they expect this to happen for services such as social networks or really anything with some kind of community features. The whole point is that everyone can share stuff and access each other's data. Separating the data of EU users into their own version of it significantly reduces the value of the service in the EU.

Of course, moving _all_ data processing to the EU could be a solution, but there are still no real competitors to the large US based cloud providers.

This doesn't seem right. The location of processing is irrelevant. As long as the servers are owned by a US based company, they can theoretically be forced to spy on the users without being able to disclose that they are. Isn't that the main argument?