It's not great, and I do wish that the current coalition had prepared a bit more for this winter, rather than assuming 1. enough people would get vaccinated, and 2. that it wouldn't come back seasonally like last year. They really should have prepared months ago.
I can't think of a better alternative given the current situation if the end goal is to get people to reduce contact and get vaccinated, short of a full lockdown for everyone (which I think is a lot less preferable). Whether this form of lockdown will have any effect remains to be seen.