That's okay though. Most of these idiots that buy and fly these things can't fly in manual mode anyway. They aren't really pilots. Kind of like script kiddies vs hackers. So it's a silly solution, but it might have the desired effect for a short while.
The whole regulation issue is such a sticky one. Obviously we don't want idiots flying these things in crowded city areas, over people, or near airports. Before technology advanced and made park fliers and quadcopters possible and easy, the hobby was rather self-regulating. And the hobby still is for the most part. But the trouble is now we have a lot of people who aren't really part of the hobby (they just want to play with a toy) buying and using these devices. They aren't being safe or smart. And regulation is likely not to reach them anyway as they wouldn't know or care about the regs. Just the people and companies who are interested and vested in model aircraft operation will even understand the regs, and they are the people who are already trying to be safe and smart. The regs will just burden them unduly.