That's ok, they provide the models. They can be run at Europe, given you have capable hardware.

And the path to pleasing the EU would be straightforward: make a EU subsidiary, have it host or rent GPUs and servers in Europe, make sure personally-identifiable data is handled in accordance with GDPR and doesn't leave that subsidiary, make sure EU customers make their accounts with and are served by that subsidiary.

Meanwhile, to please the US they would probably have to move the entire company to the US. And even that may not be enough

Banning the site would be fine. The model itself will still be available from a variety of providers as well as locally. The US is more likely to ban the model itself on the basis of national security

Does EU block websites that don't comply with their laws?

If DeepSeek becomes popular in America I predict it will be blocked, national firewall style. Will EU do the same?

Generally no. For all people complaining about EU regulations, the regulators typically opt to fine companies into compliance.