Good read. The Brussels effect seems to be facing the same problems the rest of the EU is facing - increased pressure from the outside.
On the tech side I think it's mostly that tech giants can now use the US as an instrument to apply pressure more than it is EU regulatory overreach on AI. Yeah, the EU has failed to manifest their own tech giants, but I'd argue this is a good thing because holy shit the tech giants are a cancerous blob on society.
Started out meaning that someone is actively doing something for the purpose of looking cool. Here it's just used as a synonym for cool.