And none of that would be an issue if not for the fact that so many companies are creating games that become paperweights when they shut down the servers.

It used to be very commonplace to include server binaries with multiplayer games, before dedicated servers for every game was the norm. Also before that, modding games, including multiplayer games, was also highly normalized. If anything, the era of live service titles that are completely 100% locked down and only work with the developer's servers, punish modding, what have you is the aberration, not the norm. And those games once the developers want to move on, become paperweights when they do. All the achievements made, all the items unlocked, all the currency invested, instantly becomes worthless.

So like, I dunno, if you as a developer are not in this for the long haul and don't want to have to comply with this regulation at great expense at the end tail of development, then develop it like it used to be done? Include server binaries for people to use at launch? Maybe plan on making your money back on purchases of the game, and not on long-tail monetization that demands more security and locked-down-ness in the software to be viable?