That is completely unreasonable. Private individuals running hobby "businesses" on servers in San Francisco and Texas should NOT be subject to EU taxes. You're saying that because it would help you. Objectively, it's an absurd notion.
You don't seem to be understanding the key point:
THE PEOPLE WHO _RUN_ THE BUSINESSES DO NOT HAVE TO PAY _ANY_ TAX FROM THEIR OWN MONEY.
All they have to do is to add the VAT onto their existing prices, and send that money to Europe. The amount of money that the BUSINESS ends up with is the same either way.
Here's how it would work: you sell something to a US user for L$100, and you recieve L$100. Then you sell something to an EU user for L$100, but the Second Life system detects that they are in Europe, and it knows where in Europe they are. Suppose that they are in Luxembourg. They are then told they will have to pay L$115. They agree, and L$100 goes to you, and L$15 to Currency Linden's VAT fund. YOU GET YOUR L$100 EITHER WAY. THERE ARE NO TAXES FOR YOU TO PAY.