> Let these positions continue to function as gap-filling opportunities for the young and those who need massive flexibility or want side-hustles.

It seems pretty clear that instead of letting people be underpaid (which affects the economy badly anyway) they prefer people to be paid properly.

In Netherlands there's a proposal that employers who use flex workers should actually pay more social benefits for such people. This as these workers will likely need more social security. That cost needs to be on the employer, plus it'll encourage companies to hire people on a permanent contract.