1) I've witnessed creeping internet censorship starting just like this: first it's something as innocuous as "let's protect creators" or "let's protect children from harmful content", then 6 years later you can't criticize the government. They've just created a legal framework for massive automated censorship, and also Overton window was moved. I expect this to happen as soon as this law is backed up with the technical means.
2) People in power are uncomfortable with the current state of the internet, that is a true p2p platform for communication. Can't have that! We just got moved one step closer towards their vision of the Internet, that is nothing more than TV + storefront.