If a single car manufacturer decides to capture license plate data from their customers ' cars' cameras, then we're back where we started.

I like this proposed policy and I'll happily take the win if it passes but I see two subtexts here and neither is good:

First is that local and state governments have been deploying 1984 for enforcement of petty matters for which dispensing "real" enforcement labor can't be justified economically politically a or both. The feds are fine with this because they can get at that data. What they're not fine with is that it's pissing people off. The feds are worried that this could turn into court and legislative precedents that make things harder for them. For example the DEA doesn't want their flagship I95 surveillance corridor to get nerfed because NYC went too far with it's own pet project and laws got made in response. They'll happily tell the states "no you can't do this thing we do" in order to preserve their own ability to do the thing.

Second is that the feds don't like that the public is becoming soured on the regulatory hackjobs of the 1970s that were hailed as great successes at the time. As the country becomes more divided people are realizing that the current "have the feds grand fund everything at least in part" paradigm results in strings that nobody wants being attached to everything. So doing one little thing that everyone agrees on is seen as a way to say "look we can do good with this power we really shouldn't have in the first place".