I don't know exactly what Paul was referring to when he wrote his tweet, but my own interpretation of the problem is that the EU has basically transferred the responsibility entirely over to the end user, which is a responsibility that we know people are not capable of handling.
Sure, you can say that websites have the option of "Just don't track", but realistically we know that that will never happen. Particularly since a lot of websites are actually tracking the user for the purpose of making the experience better (such as remembering settings, recent search terms, etc...), rather than tracking for the purpose of selling data to advertisers. But, from the user's point of view, they won't know what they have agreed to anyways. So essentially we get to a scenario where 99% of the websites have annoying cookie banners, when we already know that 99% of users won't read the terms anyways...
If the EU was good at regulating things, they would come up with a solution which puts the responsibility primarily on the website. One example of this could be if EU defines like ~5 different "data ratings", with pre-defined conditions of what sort of data was allowed to be tracked for each rating. Then the websites are responsible for choosing the rating that corresponds to their level of data gathering, and if they report it incorrectly, the EU could fine them.
The result of this is that when a user visits a website, you can quickly see a "badge" in the browser which lets you know what sort of tracking this page has (thus the user learn what each rating means, and get a better understanding of what they agree to). This is very similar to what Apple already does in the App Store in the "Data Linked To You" section for each app.