IANAL, but there’s a question of reasonable burden. Not sure if that applies here, but it’s not unreasonable to say you simply don’t want to do business in a state where the regulations are cost prohibitive. Given they make a reasonable effort to not provide a service to MI, it’s not really on them to police people trying to circumvent a state’s local laws.

Pornhub and BlueSky have done similar in response to this legislation in Texas. Wikipedia and a few other sites blocked the UK to avoid being burdened by their Safety act. Pretty much every streaming platform implements regional geo blocking for licensing reasons.

I’ll be curious to see how things shake out in the long run given the current political climate.