I mean, reading through this, all they have to do is "accidentally" misflag your account and you still have to provide ID or verify somehow. That means that they still have a route to gather that information on an account-by-account basis if they want to. When I saw the title I was hoping they had some novel way of doing it.
I guess "for the children" will always be a good pretext for gathering data that should be private. Online safety should be the responsibility of parents, I think. Not platforms. But you can't legislate parents like that.