That's very nice language but the whole point is that commercial entities can challenge what is or isn't a legitimate policy to protect public health or the environment. They shouldn't be able to do that in the first place. They have no such right.
Not to mention that you make it sound like ISDS is a new thing that was marketed ineptly when in fact the notoriety stems from foreign businesses suing counties who tried to reduce trade in asbestos.
And besides, I'm not even sure whether it would be economically wise for a country to always threat foreign business and local business equally. Right now I'm sure many Europeans wish they had more local alternatives to US tech.