Oh I do follow your reasoning but you set into motion actions and then don't follow through on understanding the consequences. you advise jumping off a 10 story building because it's a rush without looking ahead to being pulped when you hit the ground.
At first the French judges ordered that google.fr be censured & google obeyed. At present the judges are ordering google.* to be censured. Some pretend that Google could just censure according to geographical origin but then the judges will note that people are using VPN's & proxies to sidestep the censorship and order that they be blocked too. Saying that they won't is denying that the ground is fast approaching.
Google operates in France under local laws, just as it operates in the US, in Thailand, in Turkey, in Saudi Arabia, etc. If France is allowed to impose it's narrow conception of Internet Freedom on the rest of the world then the rest of the world will be able to impose it's views on France.
Pretending that, no this only conditions Google's presence in the EU is equally short-sighted as the EU is FAR from uniform in it's morals and customs. Accepting the French judge's premise of extraterritoriality will mean that Greek/Lettone/Slovakian/Austrian/Spanish/... judges will be able to ban anything that THEY find offensive.