It feels like the only aspect of Game Theory at work here is opportunity cost. For example, why shouldn't you make AI porn generation software? There's moral reasons for it, but usually, most put it aside because someone else is going to get the bag first. That exhaustive list the author enumerated are all in some way byproducts of break-things-move-fast-say-sorry-later philosophy. You need ID for the websites because you did not give a shit and wanted to get the porn out there first and foremost. Now you need IDs.

You need to track everyone and everything on the internet because you did not want to cap your wealth at a reasonable price for the service. You are willing to live with accumulated sins because "its not as bad as murder". The world we have today has way more to do with these things than anything else. We do not operate as a collective, and naturally, we don't get good outcomes for the collective.