Completely agreed, it is rational to de-escalate by several steps (e.g. to have cloud providers "spontaneously" decide to split into different, actually autonomous but still privately owned, corps, which in turn is a threat to returns of the home corp so they would put pressure on the US government not to escalate this far politically, and so on).
It's just that the possibility of the "nuclear option" works as a deterrent.
It's just that the possibility of the "nuclear option" works as a deterrent.