For what it's worth, I'd argue the same should be permitted of a small car maker. If I want to go build my own cars, step 1 should be putting a motor on a chassis and being able to drive forward. Step 1 shouldn't be adding airbags and seat belts to a couple axles.
The safest car is one that can't drive, and the most privacy-friendly software will fail to compile. You should be able to build a functional car before you need to worry about making it as safe as possible, and similarly you should be able to build a functional MVP of your software before you need to worry about compliance with a huge international policy.
Like most car analogies this one has a fatal flaw.
Before you are permitted to use your DIY car you need to comply with safety regulations to avoid harming others. You can keep your unsafe car off the street in your garage, though. Same for software that is not compliant; you just don't get to call it a "product" and let it loose on the public.
The safest car is one that can't drive, and the most privacy-friendly software will fail to compile. You should be able to build a functional car before you need to worry about making it as safe as possible, and similarly you should be able to build a functional MVP of your software before you need to worry about compliance with a huge international policy.