Well, if they really do this, I guess consumer folk will just have to come up to what enterprise operations do (or at least should be doing, I know this varies widely based on how idiotic manglement is at the operation in question):
Treat the ENTIRE RF device as a snoopy, buggy, insecure, dangerous piece of poison that should never, ever see:
1.) A connection of any type to the public Internet
2.) Unencrypted internal data of any sort
This means the access points go on a private, dedicated, cabled network (no VLANs or, *shudder*, shared cabling with the WiFi on a different subnet) with a single host visible: the gateway to your VPN. Yeah, it's a nuisance and yeah, it costs more, but really the other option (everything wide open -- no, "passworded WiFi" doesn't count when the firmware is a hackable black box) isn't exactly a secure option in today's always-connected, always-hacked IoT world is it?
This also means that either phone technology will need to adapt or people need to stop bringing their favourite little spy along to every private location and conversation. Expect more businesses to start banning phones from entire properties (this is already the case in many locations), and maybe people to start telling other folks their phone isn't welcome in their flat -- after that, I wonder just how popular this new law will be. Probably the only way to fix this is to make an RF module that's isolated from the rest of the device and standardized / swappable, but that would need to be legislated as a requirement along with this new proposal.
And WTF on the environmental assessment? Of COURSE this will have an environmental impact. Even the knock on effects of people leaving their mobile behind and communicating / travelling less efficiently would increase carbon emissions, plus the glaring elephant in the room of throwaway phones and laptops like our cousins across the pond.
On my side: if I can't compile and install an OS for my phone, it's not really my phone, is it? And if it's not really my phone, I don't really want to pay to carry around a spy no matter how convenient people say it is. Maybe some convenience comes at too high a cost.