The incentives are structured to make immediate takedown the path of least resistance. Yes, in theory, they can do otherwise; why would they spend money and effort doing otherwise?

Providers not liable under DMCA still do this anyway. It's not worth fighting for anything at all, to them. They'd rather lose your $10/month of revenue than take a 0.01% chance of a $100,000 lawsuit. Try getting a false abuse report on almost any VPS provider.

Look at Fosta/Sosta. Craigslist didn't have to take down the personal sections, but they did to totally remove any chance at liability.

DCMA responses are all about minimizing costs. It's much cheaper to just do it.

Private companies will respond to this in exactly the same way.

Regardless if it's actually a part of dmca is beside the point. If the law didn't exist, this type of account loss wouldnt have happened.

Similar mal-interpretations/exaggerated response will happen with this new law too.