This is so fallacious that it almost doesn't parse as English (largely imo because it's been fluffed up to hide the utterly commonplace "so you're saying everything is wrong unless it's perfect?" strawman.)
Regardless, feel free to ignore my strawman and tell me the real argument.
I think maybe you've misunderstood steelmanning. It's not about taking an argument to the absolute extreme, it's about constructing the most convincing and effective form of the argument.
That doesn’t mean “any sub-utopic framework they have to participate in is immoral”, it just means this particular one is.
The only change is that Uber grew the market and popularized hiring cars, and the state of California decided to start attacking its own tech industry.
There's a lot of hypocrisy here. If the state truly had worker's interests at heart it would be looking at the farming industry, not ridesharing.
A tragically myopic argument to make.