At least it increases the cost of compliance so that smaller providers and incumbent challengers will have a harder time.

The main problem is what they force you to share, and thus make prone to leaks.

It depends on your level of cynicism, which for me varies by the day. On a bad day I agree with you. But on a good day I'm reminded that sometimes these laws can be used *against* government: https://en.wikipedia.org/wiki/Data_Retention_Directive