> How exactly does the EU propose to apply its laws to people dealing with Europeans outside the EU?

The EU can seize hard- and software of Facebook on their EU servers, the EU can seize Facebooks cash holdings in Ireland, the EU can seize (and sell off) Facebook’s patents held in the EU.

Stuff like this has happened before, and european governments have previously even seized airplanes from airlines right after landing to pay customers for a refund for a flight that the airline refused to pay.

This can, and absolutely will happen.

USA appear to have pushed their laws outside their natural jurisdiction ....

I think in practice it will mean Facebook, say, can't suddenly breach the normal EU regulations just because you went on a trip outside the EU.