Completely agree with this law. However, with the Model 3 and autopilot on I don't see the difference between noodling with the phone or my dirty big center touch screen.
Something that needs to happen alongside punishing drivers is far stricter UI standards for in-car equipment and software. There is a lot of flagrantly stupid design - including anything that requires a driver to use a touch screen or modal interface while driving.
The "giant iPad" controls are one reason that I wouldn't look twice at a Tesla (unless you want to tell me that everything you need has a button on the steering wheel).
...but just having physical knobs and buttons isn't enough if they are all multi-function and you have to look at the display to see what "mode" they are in. With my existing built-in car audio, to (say) switch from radio to MP3, you have to turn an 'endless' rotary encoder until the right function is illuminated. Prize goes to my previous car stereo which (a) used up 20% of the facia with a massive bezel surrounding the "Super Bass Boost FX(tm)" button and crammed everything else up to fit and (b) if it lost the radio signal, triggered an alarm-clock style escalating beeping until you did something - just in case you hadn't noticed that the radio had gone quiet and (c) featured eye-piercing blue displays that completely wrecked your night vision.
My other favourite is Google Maps in turn-by-turn mode. Turn-by-turn is specifically for use while driving and - while it's up to the driver not to fiddle with the settings while driving - should never ask you to interact in mid-trip. Yet, when it detects a delay and suggests an alternate route, you get the "please press this tiny button to confirm" message. OK, so it's not like it magically knows your position and speed and could automatically detect if you'd accepted the detour... oh, wait - yes it could!
Unfortunately, it has been proven by history that "the invisible hand of the market" will happily build and sell death traps until forced to do otherwise by legislation. We do now have strict safety standards for cars - but they don't seem to have caught up with the fact that the "driver interface" is also safety-critical.
It's ok to condemn the complete morons who think they can text and drive, but it should be possible to change the channel on the radio or adjust the heating with no more than a glance away from the road.