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If they're not outright illegal, they'll be outcompeted by sites that don't require you to install special software to visit them. Those sites will have a marginally higher chance of being subpoenaed than before. They'll have to tell their host who they are (which is already the case for non-onion sites) and if they publish Nazi propaganda the police may knock on their door.

You know, exactly how it was 25ish years ago before the regulated Internet era. We had an internet back then, and people were slightly more constrained with what they do on it.

Over time, people tested the boundaries of what they could get away with, found they could get away with a lot, and then got away with a lot. Now we generally agree it's gone too far and the boundaries need to be set tighter. This is the cost of that.

I believe that heavily warps what happened with content or opinions on the internet. Today the net is far more constrained. And we need less of that instead of more.
A couple of browsers can connect to Tor without installing anything extra so maybe as the internet is tightened down more browsers will add this ability. To your point though it is still slower and people despise latency so the faster sites will likely win out.

In terms of legality it is not clear to me that countries will enforce the laws of other countries even if they are allies. Global trade is changing and I suspect that could affect international enforcement as dependencies shift, maybe. Time will tell.

Seems like a great way for people to break laws they didn’t even know they were, only to be surprised when getting arrested on a trip to Germany, for instance. Different countries don’t legislate speech in the same way. (Obviously not a fan of Nazi or their propaganda)
It already works that way offline. You can build a reputation of praising Hitler in public all the time, then get arrested when you go to Germany. (Should have praised Netanyahu instead)

And you can do the exact same thing online.