It is neither impossible to follow or very hard. It just happens to be incompatible with US laws that grant local law enforcement access to stuff that is stored outside their jurisdiction, for customers also outside any jurisdiction.
Well, in the case of GDPR it is the EU that extends its powers to persons (natural and legal) based outside of the EU
The CLOUD act good or bad only puts requirements on companies based in the US.
Google refused to follow Chinese laws (by spying on the Chinese for their government IIRC). So they got out of China. This allowed for companies respecting Chinese laws to bloom.
I would hope that the same is possible in EU (except that, as an EU citizen, EU laws of course seem more moral than either Chinese or US ones...)
I can’t see EU’s balkanization in positive light either. Seems good ol protectionism instead of actually innovating. Privacy is a trope, they give away data at US’s whim.
The EU isn't "the" EU. The GDPR was created by the elected representatives of the EU citizens. The EU commission consisting of representatives of the EU member state's governments are giving away the data.
We wanted data protection, we got data protection. The commission is losing in court with its idea to give data away (e.g. privacy shield invented by commission, stopped by the court).
In both cases, the rest of the world should retaliate by limiting access to advanced technology until laws change.