It is insane. I see the same argument in every thread about GDPR and I just can't wrap my mind around it. I can't imagine how well represented or identified by nation-state politics these people must be that they are willing to concede such degrees of discretionality to a government.
No. EU regulation uses court as a matter of last resort. This is a good thing. It lowers barriers to entry because the regulators are not the enemy that you need to lawyer up tot talk to.
The more EU critic your website/you/your consumers are the more risk for this potential cost.
They will use this in any way they can. Just because a few say this is not the intent of the law, I have yet to hear a court ruling that minds the intent of the law and not what the law says. (On a EU level that is)