I don't see what's arrogant about Facebook's approach here. They say they do not derive much value from this content, and the government is proposing to charge them much more than the value they do derive. So they are left with the only rational choice: to not have the content. That's not a threat, a punishment, an attack, or anything else. It's just a decision that needs to be made in light of the tradeoffs facing their business.

The proof will be in the pudding, but I suspect Facebook will suffer minimal economic harm from blocking the news. That will be clear evidence as to who was the economic beneficiary of their relationship with the news media.