I partially agree with you. This seems like a very good argument to start competing with the US harder.
As a counterexample, I'd like to offer you sci-hub which doesn't seem to significant hosting problems. Remember, we are not trying to replace an entire industry and all possible use cases at once. We're simply discussing the hosting of a few git repositories which some US entity might consider unsavoury due to a borked and unfair law.
> As a counterexample, I'd like to offer you sci-hub which doesn't seem to significant hosting problems.
They have to change domains all so often as the copyright mafia has a "blanket" seizure grant (https://torrentfreak.com/publisher-gets-carte-blanche-to-sei...), Cloudflare won't touch them as a result, their founder has (at least!) one court judgement of 15 million US$ by Elsevier in New York and another 4.8M$ by ACS against them and I bet that there is some sort of secret indictment floating around that gets unsealed in the case Elbakyan ever travels out of Russia so an extradition warrant can be put out.. the relatively unique advantage they have is that their founder is possibly linked to the Russian secret service GRU: https://www.washingtonpost.com/national-security/justice-dep...
Effectively, Elbakyan's right to free movement is restricted to those nations that don't extradite to the US and have friendly relations to Russia. And for what we learned from the Snowden and Assange cases, it's safe to assume that even flying over a country that has extradition agreements with the US in a passenger flight is grounds enough for intervention.
As a counterexample, I'd like to offer you sci-hub which doesn't seem to significant hosting problems. Remember, we are not trying to replace an entire industry and all possible use cases at once. We're simply discussing the hosting of a few git repositories which some US entity might consider unsavoury due to a borked and unfair law.