>There are thousands of eBooks in the Project Gutenberg collection that could be subject to similar over-reaching and illigitimate actions.
>PGLAF is a small volunteer organization, with no income (it doesn't sell anything), other than donations. There is every reason to fear that this huge corporation, with the backing of the German Court, will continue to take legal action. In fact, at least one other similar complaint arrived in 2017 about different books in the Project Gutenberg collection, from another company in Germany.
I'm sure PGLAF will welcome a German spin-off that makes works available in a manner compliant with German law, they just don't have the resources to be that place.
(Oh, and so what if they retaliated? Seems like a perfectly reasonable excuse for a bit of theatrics.)
Quite obviously, it would not, so blocking all of Germany is the correct move to prevent any future cases under the same legal theories.
They don't want to be under German jurisdiction; the German court has said that serving users in Germany puts them under German jurisdiction; therefore they are no longer serving users in Germany. This seems like it should satisfy everyone concerned.
Which, I want to be clear, is a good thing. PG is absolutely in the right here, and this response is well-calculated to raise awareness and put their attackers in the spotlight.
For comparison, if they faced a U.S. publisher demand to block some books that were in violation, and in response they blocked all of the U.S., it would be misleading to suggest this was merely the "simplest solution".