From the article it appears the screen's 'distraction' is not their only concern. Also of concern is the layered interface which requires one to navigate down several levels of menus to do things such as 'turn the fog lights on'.
- disables non-essential features above a certain speed
- makes all essential features visible and usable without navigation
From the quoted law it sounds like this should be enough.
To be honest, I'm a little surprised that this isn't how the Tesla works. It's a car, and hiding something like the rear fog lamp behind layers of navigation sounds dangerous and should be forbidden.
http://en.wikipedia.org/wiki/Automotive_lighting#Rear_fog_la...
edit: http://www.teslamotors.com/models/features#/interior shows a video of screen operation (scroll down a bit). I really don't feel this thing is a good idea.