I was alway hugely impressed with the public transport in Europe. Utah has pretty good transport (this project wouldn't be necessary, for example), but it is still difficult to use if you aren't either traveling around or to the downtown Salt Lake City area or have a lot of time you are willing to drop on the commute.
Sadly, I think this is pretty typical of the state of public transit across the US. Subway systems tend to be better - maps, when the next train arrives, etc. But the bus systems have little to no info.
edit: It occurred to me that it was possible what you found inexplicable was why the law was still on the books. It seems from Deutsche Bahn AG's opposition to Yourbus, that interests such as the (now privatized) state rail and other industries would simply lobby for an advantageous status quo. Especially so, considering that Deutsche Bahn operates its own bus service, and has for a while, in a comfortable niche carved out from and protected by that very law.
Yes. Or more: That the lobbyists carry so much weight, where the public interest is very clearly to have more competition.