Because they're compelled to do so by EU law, they don't want to do this and no one else forces them to.

Only the EU is requiring them to do it, but other governments might start pushing for it given the upsides

This is what I don't get. Surely they know this is coming everywhere. Malicious compliance just looks like a dummy spit and hurts consumers.

It's Apple, it's not the first time they try malicious compliance way, it won't be the last, it really seems to be the only way they can comply with the law.