Don't threaten me with a good time. ;) I don't see any problem with the "balkanization" you suggested above either. The Internet is meant to be decentralized. Get the euros off our platforms and let them build their own.

HOWEVER I could compromise on a system where companies set up special admin accounts for law enforcement officials to moderate illegal posts on their own. Or law enforcement could point to specific content and have a special contact address to request it be taken down in some reasonable amount of time.

Basically if EU wants to moderate let them pay for "content cops" themselves.