...and then (a majority of) the cybersecurity experts hired decide locking things down to the point of being nearly useless for their intended function.

(Though occasionally it's possible to find some that are willing to think, educate, and work risk-based solutions).
Really comes down to picking your preferred poison - as the best a person can do won't always be good enough. Hence the need to inflict a cost on those who even attempt to engage in such actions... much like if someone breaks into the wrong house they may pay a final price.
Jurisdictions aren't much an issue since many cybercrimes are federal crimes, and thus fall under the jurisdiction of the FBI (granted them being appropriately & consistently resourced is an issue) ...and if it crosses international boundaries then it's still a federal government issue.
If anything, state and local jurisdictions could/should enable local law enforcement to deal with the "minor" local issues (e.g. locals causing problems for other local residents). ...really not that different of a situation than the transport & distribution of illicit drugs (in ways there's potentially more forensic information available for digital crimes given how few tend to happen without one or more networks being involved).