After the Schrems II decision, data transfers to US data processors are increasingly risky at best, for example to public cloud providers such as GCP, Azure, and AWS.
A very common suggestion is to store your data in EU-based data centers of these cloud providers if your application isn't too latency-sensitive, for example in this answer.
I fail to see how this makes a significant difference. All of the major public cloud providers are US companies, and their servers in Europe are still under their control, and so the US government can just as easily demand to hand over data hosted on EU servers as they can on US servers.
In a strict sense of the word, data transfer to the US is indeed avoided, as the data physically remains on EU servers. But in a broader sense of the word, and really in the spirit of the Schrems II arrest and GDPR in general, the data is de facto transferred to a US controlled company the moment when it's stored on any GCP, Azure or AWS server, regardless of where that server is located.
Thus, I feel as though hosting on EU-based servers of US-based public cloud providers doesn't solve anything at all, and simply provides a false sense of security and compliance. Is this correct, or am I missing something?