This isn't about how it works, it's about whether it works or not. That companies need to follow the law isn't exactly confusing, and nobody is saying they shouldn't, but when the law cant even clearly answer basic questions of who it applies to and when, that's a problem.
There are examples of regulation that does work, but GDPR is not really in that category.
There are examples of regulation that does work, but GDPR is not really in that category.