The whole premise of this, as I read it, was that while OBD ports are fair game (and any protocol over them), there is other data that is (often) necessary to diagnose and repair cars that is not available from OBD and is phoned-home. That's simple enough.
What I think is superb is that the law requires data to go _directly to consumers_ as in, car makers would be required to change immediate locations of outbound telemetry such that they can't get it. This is key as I, first, don't want data leaving my car at all, and second, if it does, I don't want the automaker or insurance company to get to it.
I'm sure automakers (Tesla especially, since they pioneered brutally connected cars and data capture) aren't thrilled about this, but I am optimistic to see where it goes. Maybe I'll be able to buy a new car that doesn't phone home (or only phones home to a service I personally own). I can dream.