I'm not sure what you're saying. Do you mean that each individual is supposed to know where every site is based instead of having country-wide/EU-wide protections in place?
Individuals are not perfectly capable of this decision, especially since they are multiple steps removed from said decision (e.g. saas I use is using another service hosted on amazon); and in a lot of the cases (e.g. using a software for their job) not even in a place where they can make the decision.
Government does not tell you where you should keep your data. They tell, where you can't.
This is because it is not a compliant place to store data at. Same reason we don't want you to store data in china, for example.
So you say nobody should say visit US because human rights apply only for citizens? Do I also don't have the right to point that this is bad? When did non US people lost this right to complain?
Is there a reason why making it illegal for NSA and CIA to spy on EU citizens with warrants is affecting you personally? Do you work for CIA and you don't want to fill paperwork?
This is such an obvious solution, remove the stupid law and partner with EU in protecting privacy, then you can work together against China.
All I am saying is Individuals are perfectly capable of making that decision. Whether they should store their data in Germany, California or some random Caribbean island.
Also, remember the time when Germany decided to go after their own people? How does laws like this help when it comes to situations like that?