Compute is the bottleneck for AI, not labor. Linux was able to develop more because of the labor being done by huge number of people for free and from those employed by other companies working on it. If AI keeps accelerating on the same trajectory, there is little reason to hope for it to get better as the models get larger and training costs get higher
The Luddites were not just smashing machines, they had a list of demands they were trying to build pressure for. They were also trying to get the rights for unions, strikes, abolishing child labor, minimum wages and the things like that which shifted powers back into the favor of workers. They had tried petitioning governments for that for a while before they started smashing things
If the US bans open-weight models, you don't think a large number of countries would be heavily pressured by industry to do the same?