What we're seeing here is surveillance of a public area, used for a clear goal, which is proportional (because texting while driving is insane) and is reviewed by humans, and has clear avenues for escalation when it makes a mistake.
The scary parts are the parts that such a system is capable of, but which are not made public. For one the article doesn't mention whether the data is used for anything else or if it is ever deleted. It's also not clear if there are plans to use it for less serious offences, or if the human review is going to be removed at some point.