Private servers are not always a viable alternative option for players as the protections we put in place to secure players’ data, remove illegal content, and combat unsafe community content would not exist and would leave rights holders liable.

Ah, yeah, so when I play an old game that's kept alive by the community with dedicated servers and some random user were e.g. using hate speech or such in (voice) chat, then the publisher, that released and discontinued that game way before there were laws about hate speech is now liable?! Ha ha. In other news, if you fear that you might be liable for this, why publish software which light be problematic in a few months/years/...? Also multiplayer lobbies and unsafe community content - name a more iconic duo. You often ignore reports about toxic players and hackers anyway, although you probably are liable for their damages (at least after we reported them)

In addition, many titles are designed from the ground-up to be online-only; in effect, these proposals would curtail developer choice by making these video games prohibitively expensive to create.

Then why the fuck are Singleplayer Games designed to be online only? Also, why not just release a docker image of your server plus a docker-compose/kubernetes deployment definition? You're usually using cloud hosting and automated deployment anyways, so you probably already have one laying around anyways...