It's called Corruption.
If this goes through, watch out in a couple of years for ex-commisioners being paid fortunes by large Tech companies as non-executive board members, giving speeches or consulting gigs.
It's the same way as in the US, were people in positions of power doing "favours" today for large companies "by an amazing coincidence" later end up being paid enormous fortunes by those very companies or related companies for "working" 1h/month or similar - at that level the exchange of political favours for money is not done using brown envelopes full of bank notes.
Investigation and Prosecution of Corruption in Europe are a joke whilst Conflict Of Interest legislation is non-existent or riddled with so many giant loopholes that it's actually worse than if it didn't exists as it deceives most people into believing these things are properly legislated for.
We live in a seriously corrupt era in Europe, even in the countries which were traditionally cleaner.
The EU has no digital dependency on corporate AI, which seems to be the biggest beneficiary of unwinding the GDPR and other personal-info protecting legislation.
I partly agree with the point you're making but I don't think it actually applies that much to weakening this specific legislation.
Further, your point doesn't negate the Corruption - nothing impedes both things happening at once and in fact Corruption explains the current digital dependency, which for example was made worse by EU decisions such as treating the US as a safe haven nation for the data of EU citizens even though already then the Snowden Revelations as well as US' very own legislation made it very clear that the US was not safe for any data stored there or in the hands of US companies since their authorities could secretly force companies there to give them access to that data.
We are in the hole we are in part because over the years people in positions of power in the EU were "friendly" to and "understanding of the concerns" of large US Tech companies and "by an amazing coincidence" were latter given millionaire "jobs" with those companies - EU policy in the digital domain was shaped by something other than the interests if EU citizens or even EU businesses and, last I checked, US companies were not the ones EU politicians were elected to represent.
Last but not least, further caving to the US will just dig that hole even further, making us even more susceptible in the future to such blackmailing - it is literally the very opposite of the direction when should be going to.
As I see it, the EU is a 470 million people market which could seriously fuck up US tech companies doing things like cutting the accounts of judges in the EU which weren't nice to them, and do so by using already existing regulatory tools (for example, launching investigations on them for non-compliance with several EU regulations), which could go all the way to huge penalties and even blocking their access to the EU market (which is huge and represents a massive chunk of their profits). There simply isn't a will to do so and I fully believe that lack of will is related to personal upside maximization of people in positions of power in the EU since, as you describe, they're already attacking the Judiciary in the EU.
Frankly the only explanation I see for these measures which isn't either some form of corruption or massive incompetence, would be if this was just one big smoke and mirrors show to delay actions by the current US administration with no actual intention of ultimately doing anything meaningful, all to give time within the EU to move to alternatives which are not dependent on the US and/or for the evolution of events (for example, the AI bubble crashing) to make the whole thing irrelevant. Even then, this doesn't provide a positive explanation for the strange unwillingness of EU regulators to deploy the big guns when the US attacks members of the Judiciary in the EU as you describe, and for the various measures taken in the past at the EU level which have helped create and deepen the current digital dependency.