Emulation is the least amount of work for all involved. If some poor guy is to spend weeks or months of his time porting a game it better be worth the investment. Porting should only be done for games that are completely broken and can't run in a VM or emulator.
It takes less than 30 minutes to setup a Windows or Linux VM.
The music industry wants their license fees and people want to play using those special controllers. So it's prohibitively expensive to make this type of game on top of the added burden of the hardware. It's a miracle the game even exists as is.
How would you identify text or images generated by AI after they have been edited by a human? Even after that, how would you know what was used as the source for training data? People would simply avoid revealing any information and even if you did pass a law and solved all of those issues, it would still only affect the country in question.
Devil's advocate. It means that only large companies will have AI, as they would be the only ones capable of paying such a large number of people. AI is going to come anyway except now the playing field is even more unfair since you've removed the ability for an individual to use the technology.
Instituting these laws would just be the equivalent of companies pulling the ladder up behind them after taking the average artist's work to use as training data.
It's really no different than a service upping their subscription fee or a grocery store raising the price of eggs. There's no law that says the price will remain the same forever. You can of course add it to the terms of a contract, but it's at your (in this case Unity's) own discretion.
The problem is they keep changing the license terms every 6-12 months and the changes have always been retroactive. I think they've changed it about once every year for the last 5 years and this year they did it twice. Games often take years to make and that means you might have no idea what the terms are going to be by the time you're ready to release.
So lets say they walk this back. What about next time?
A few series exist that let you do this, but none offer agency to the other players outside of battles to go talk to NPCs and get their own quests.
I think Divinity OS2 has this. You can go off on your own and do side quests. But you're probably going to be restricted by how tight the difficulty curve is and can't handle major battles solo. Though I guess a mod could change that.
I get that communities for popular games can be a bit hit or miss, but communities for single player games are pretty chill. Competitive team games like the Source games you mentioned, League of Legends etc. are on a whole different level of toxic. They can't even be compared.
For something like Genshin the real problem is content creators. Much of the so called toxicity has little to nothing to do with the game itself and is more an issue with huge cults of personality clashing with each other. I think every popular game is going to fall victim to this going forward and you just have to learn to ignore it.