That's fair, and it sounds like we aren't that far apart. It is, in fact, about control. So I'll restate my central theme as "until the idea of enforceable data sovereignty requirements were enshrined in law, the cloud providers did not and would not delegate control of any body of data to 'controllers' that weren't in jurisdictions where they could be influenced/coerced to compromise that data". Was this a slippery slope/camel in the tent? Well...that's politics and it didn't have to be, but I see your point. But the reality is the push for data sovereignty wasn't done with the intention of enabling totalitarian follow-on legislation and it wasn't in and of itself a bad idea.
Best laid plans and all that.