Agreed. This rule will likely be irrelevant in 5-10 years when battery technology improves, and it has such a huge carve out (batteries that maintain 80% capacity after 1000 cycles are exempt) every phone manufacture can get around it. Phone makers can meet this regulation by artificially limiting battery capacity through software to protect battery health. Or they could put in a 10,000 mAh battery and only allow the user to use 8,000 of it, and use the rest as buffer.
A better example is the EU cookie consent law. The intent was to make websites stop using cookies, but what resulted was websites didn't change anything except put up annoying consent banners, and made the internet experience worse.
If the battery lasts 10 years basically then that's fair, but ease of repair is very useful.