I'm a pretty big critic of fellow environmentalists who get carried away with authority, sometimes actually doing environmental harm in the pursuit of theory (e.g. ROHS, removal of recycled content lead from circuit boards, replaced with tin mined from Indonesian coral islands, oy vey. Like replacing plastic with "organic, natural" baby seal pelts).
However, in defense of the enviros and the article posted on /., organic waste really is a pretty cutting edge activity. A century ago pig farmers actually collected significant amounts of food waste, and until very recently the Egyptian Zabaleen community (Coptic Christians) ran a hugely successful organic waste collection system in Cairo. It was a fairly recent innovation to put recyclables and organics and junk into "landfills" and incinerators. It's legitimate to study public policy and efforts to achieve more sustainable cities.
When I was in charge of a state recycling program in the 90s (MA DEP), however, I found that rewarding positive behavior got better publicity than "fines" for not recycling. We ran a "recycling lottery" in Somerville where they'd choose a household at random and if they had their recyclables out, they got $200. It generated the awareness the Seattle fine is trying to achieve without the Drudge-Report-iness. It's also easier to backtrack if the whole thing turns out to be a mistake, if you've given out prizes for affirmative behavior instead of fines.