> It will have properly filled compliance papers

Sounds like a perfect job for AI tbh ;)

> The thing is not that the product will be somehow secure.

I don't believe that is true. Cars do break but they have to meet safety standards. That doesn't make them perfect but it's much better than not having them. You can't make perfect safety standards in an ever changing world but you can define minimum standards.

I understand that documentation is a pain in the butt, but it's necessary to have some oversight. It's part of the enforcement. Everyone has to do it so we know the documentation should exist. That means we can fine companies that don't do it. If you mad the documentation and lied on it and it comes out you will probably fined even more. It's a deterrent and a way to enforce the rules.

Just like everyone left when the GDPR went into place? Having safety standards in place (and yes that also means documenting them) can even be a selling point. To have demonstrably secure hardware according to a standard can be highly desirable.

I think losing the companies that don't have security as a main priority isn't too bad. I assume that the EU will create import restrictions if there is a meaningful shift to avoid EU rules.