I think it's good that it is simple. People are constantly complaining about the excess of legalese in various contexts. A law that can be understood is cool and a breath of fresh air. I doubt the judges will have any trouble parsing between face blurring and face recognition.

Also, the definition excludes the face blurring use case. "'Face Recognition' means the automated searching for a reference image in an image repository." Although that detail does mean that if you're not searching for "a reference image" then you would technically be clear of the law's restriction. What if you build features based on a reference image then delete the image? Or what if what you're searching for is a person and the image is not the search target?

That I suspect would take more effort to parse. But the penalties are pretty light and the provable damages done by facial recognition are pretty minor, so if organizations get a lot of value out of facial recognition then they might want to try rolling the dice.