Real problem is the negative incentive to be correct.
The rule penalise you harshly if you serve copyrighted content, but there is nothing if you decide to not serve non-copyrighted content and there is so much content on the internet, that "market pressure" simply isn't going to work. If you are a small publisher of free content, there is a huge risk for content platform to serve your content and no reward if they do.
And that's the best case scenario, where all actors have good intentions. But in the real world we know that large copyright holder are very often bulk claiming bulk content. There is no penalty, so that would be crazy for them no to do it.
The laws is also talking about terrorist content and the need to remove it within 1 hour or risk up to 4% turnover fine ! There is not going to be any manual check done within 1 hour, and anyway the risk is so great you may as well have a blanket no-question ask removal policy.
I fail to see the "good intentions in mind" you mention. MEP are some of the most successful politicians, they would be Olympic level is it was a sport. Their field of expertise is the people and public relation. I can believe they are naive with technology (like encryption or monitoring actual capabilities) but I can't accept they are candid about businesses or individual motivations. Any negative consequence of this law is there on purpose.
