It's not really a problem about VAT registration or exemption, at least not for me. To give it some credit, HMRC has come up with a single-registration scheme to cover the entire European Union, and adjusting prices for the 70-odd tax rates is something that online retail systems can handle on their own once you've set yours up.
The big pain is the new requirement to collect three pieces of evidence from every customer to prove that they are purchasing your digital goods in the country they claim to be in at the moment of purchase, AND that I must maintain these intrusive personal records about complete strangers in an auditable format for 10 years. Having been forced to collect all this unwanted data, I am then personally responsible for its security - again for 10 years.
When I sell you an eBook, all I want is your money. Now, though, I'll also need your inside leg measurements, DNA records and the deeds of your house - which I'll keep on a USB stick in my back pocket.