An outpost/local_zone still has to have a home region that serves as the primary control plane IIUC, so I don't think that would be applicable here.
(That said, I think given their experience deploying to China, meeting GDPR, etc, and their focus on whatever it takes to make money, AWS and others should have no problem figuring out a solution to local regulations if that's what it ends up coming down to. That's far more likely than enterprises deciding to restructure everything they do around Cloudflare Workers, or Cloudflare becoming a full cloud platform.)
(That said, I think given their experience deploying to China, meeting GDPR, etc, and their focus on whatever it takes to make money, AWS and others should have no problem figuring out a solution to local regulations if that's what it ends up coming down to. That's far more likely than enterprises deciding to restructure everything they do around Cloudflare Workers, or Cloudflare becoming a full cloud platform.)