At least this can probably be safely ignored, and doesn't affect the rest of the world, unlike the UK Government's other technologically and socially clueless goal of banning all (non-backdoored) encryption.
It's the same problem just with two different symptoms. A government department completely out of touch with the modern application of technology. It could provide an easy excuse for the police to be able to confiscate and analyse computers when they are actually investigating a different crime. I was reading an article on this decision that argued it would make it illegal to even use a computer, with files being transferred between different forms of memory as part of the process. Being a high court decision I guess it is open to interpretation. Either way it is a complete nonsense.