It's definitely not "draconian" to make enshittification illegal. But you don't regulate the turning-to-shit part. You regulate the part where they offer a service for free or too cheap so that they kill the competition. This is called anti-competitive and we supposedly address it already. You also regulate what an EULA can enforce and the ability of companies to change the EULA after a user has agreed to it. Again, these concepts already exist in law.

We've essentially already identified these problems and we have decided that we need to address them, but we been ineffective in doing so for various reasons.