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In the same way as 123-reg (and others) sell privacy to .uk clients 'for personal use'. Unfortunately these companies will still find a way to offer a paid service that isn't required.
I'm not sure outlawing services is particularly helpful.
Privacy services may still have their place, e.g. if they serve to accept notices on behalf of the domain owner, which anonymous registrations can't offer.
There's something very ironic about the fact that I set up a previously unused email address, at a previous unused domain, that now received an unsolicited email from a company offering me an invitation to a GDPR event! More concerning is that the email was set up on Google G-Suite!!!!