But then it's precisely the kind of processing the EU rightly wants to address, and not only because it's the USA: China is a similar case.

But that doesn't matter to you. As long as you're too small to have a server and a (part-time) "controller" inside the EU, you seem to be out of luck (note: IANAL; there might be another way; cooperation with another small company, perhaps?).

I agree with you. I also think consumer privacy protection is important, so I'm not mad at the EU here. I'm mad at the US government for the CLOUD Act.