I’m not sure it’s that difficult to follow. If you offer a service in the EU, you are responsible for your server deleting personal data (or, even better, not even hosting it in the fist place!); you are not responsible for other people not deleting their copy of personal data.
But I’m not that well-informed in the actual legalese so my best understanding is the big issue is the EU’s definition of “provide service to the EU” more than anything else. They seem to think that just because your users might upload a local copy of a picture of someone from the EU, even if you yourself are not allowing connections from the EU, then you are serving to the EU. And with how nazi the EU has been going lately with stuff like ChatControl, the last thing I’d want as an instance owner is to be upheld to arbitrary boomers’ (lack of) understanding of technology.