If your connector really is better, so much as to obsolete USB-C, then you may be able to get the authorities to make your connector the new standard. So there is still incentive, and an incentive to make something that is genuinely better, not just for vendor lock-in.
Also to keep in mind that this regulation is a consequence of how the market developed in the last 20 years. The EU gave the industry a chance to sort out the situation before regulation, to which it mostly did with USB-C, but Apple refused to play along, also, cables haven't improved since USB-C, 9 years ago. So with a lack of substantial progress both in terms of standardization and technical improvement, the EU took the decision to regulate.
> cables haven't improved since USB-C, 9 years ago
Not to distract from your point, which I agree with, but that is just plainly untrue. A USB-C cable from 9 years ago almost certainly doesn’t support current standards for power delivery and data transfer.
Also to keep in mind that this regulation is a consequence of how the market developed in the last 20 years. The EU gave the industry a chance to sort out the situation before regulation, to which it mostly did with USB-C, but Apple refused to play along, also, cables haven't improved since USB-C, 9 years ago. So with a lack of substantial progress both in terms of standardization and technical improvement, the EU took the decision to regulate.