Like, imagine you're running a team developing an end-to-end encrypted application in Britain, and you're seeking funding. The potential investors are going to ask what your plan is to not get owned by this bill, you won't have a good answer outside of "hope they don't notice us", and they won't invest. This happens merely because the British government publicized the Online Safety Bill, and exactly zero enforcement effort was required to stifle the funding, development, and subsequent use of this hypothetical application.
Anyhow, the short of my point is that government laws have a ton of power to shape behavior outside of prosecuting people, and sensible risk-management shapes the behavior of non-government bureaucrats and decisionmakers.