The problem is that whether a country can enforce its speech restrictions against outsiders has very little to do with how much we agree with them. If you don't want to follow the law of North Korea, you'll lose access to the North Korean market. Which nobody cares about, so nobody follows them. But what happens when it's China?

The solution is for laws to apply to the location of the host and provide no assistance to anyone who wants to do otherwise. Then you can host your criticisms of politicians in the US and your violations of US prudery in Germany. That isn't a race to the bottom, it's a race to the top. It's the internet interprets censorship as damage and routes around it, as intended.