Yes, data are data, but I don't see how a law making it illegal for you to obtain content that has been geo-blocked would break the Internet. The law wouldn't have to talk at all about technical details and they could catch people by following the money more easily than by following the bytes. More practically, it would make it hard for service providers in the jurisdiction to offer services to work around geo-blocking, making the case that started this thread open-and-shut.
As for the content providers grey-marketing their content, that's (currently) a contractual issue between them and their suppliers. New Zealand has historically been very pro-consumer-choice; explicitly allowing region-free DVD players so that people could grey-market the discs. If you're going to try stopping streaming suppliers, don't forget to also have Amazon stop shipping media (including books) internationally.