Good news, as the article notes, the proposed regulation creates a working group to determine of it is feasible and won't require any further regulation if it is found nonfeasible. If you're right and this does prove to be "not technically possible", then nothing will actually change.

Hopefully this working group would do the right thing but the worldwide battle against end-to-end encryption is a pretty bad precedent. Experts who disagree with government surveillance demands seem to get discarded and replaced with yes-men. The California microstamping law isn't a good situation either.