Yes, I am declaring these things as facts based on my own experience with European startups – yours may vary. So far, the approach has been miles away from "spending huge capital" or "neurotically worrying", and much more "just following the regulations and getting on with it".
I also have experience from two start-up scale-ups that many clients are saying we won't work with you if you use a US Big Cloud
Yeah, I've not heard this from anyone – but if it's the case, it sounds like there's market pressure to use services that offer better protection of personal data. Sounds like you've found an opportunity to offer an EU-based cloud service that's better than the competition :)