However, is it possible that in a context where companies are weighing the cost of GDPR compliance against the benefits of GDPR compliance (i.e., keeping their EU business) some might come down on the side of jettisoning the EU business? They might even opt to do it by using a tool, like Cloudflare Workers, that they can convince to block everyone in the EU.
You would be absolutely, completely, 100% right to consider this fully in line with the intentions of GDPR. Protect privacy or GTFO, right?