It is bad for people. It allows them to keep using bad, centralized, censoring, services without acknowledging the problems that causes. It prevents alternatives from springing up both indirectly because they can continue to make bad choices without consequence, and directly because the heavy new regulatory load makes start-ups harder and gives giant corps (and their giant legal teams) an advantage.

Additionally, you imply that regular people are not impacted. People are businesses. They don't stop being regular people when they run a business.