You have missed off an important point. If you are NOT VAT registered, you will still be affected. The threshold has been reduced to ZERO for digital products, and therefore if you sell anything digitally to the EU, you will need to register under either scheme.

Personally I am switching to shipping my digital downloads on CD and in the post instead as then they become a physical product. But only to my European (non UK) customer base, as they are the only ones affected by this.

As a UK business, I can ship digitally within the UK (it’s not cross-border) and outside the EU without being affected. It’s only the sales to customers within the EU that are affected.