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EFF's editorialized headline is not meant to be interpreted literally. Quoting directly from the verdict

> password-protecting the internet connection, provided that those users are required to reveal their identity in order to obtain the required password and may not therefore act anonymously

The whole question by the way was not settled by the court but referred back to lower instances and is not something that will have to be answered uniformly across the EU. The court merely found that such a law would be allowed under EU rules.

May there be a loop-hole there?

If the requirement is just to have the user reveal their personal identity before using the network, and nothing is said about keeping that info afterwards, then something like this would be possible: ask the user for their personal info, handle them a hash that would work as a password to reconnect to the network within a short time window, and past this time forget said hash and the user info.

Could this work? (IANAL.)

Minimal password length for WPA2 wifi is 8 characters, foobar is 6

One of the few plus sides (debatable) of being governed by morons is that they are not capable of coming up with clever solutions to the problems they make.