Yeah, there's other concerns behind it - and the haze is a lot of us feel like it's going to create too high a barrier to player entry, damaging the chances of the California online poker ecosystem from ever achieving a sufficient & sustainable liquidity of games (for the operator costs involved).
Obv. fully regulated sites have player verification concerns the Party Pokers of a decade ago didn't have to deal with.
Another alternative would be setting a smaller initial deposit limit cap that gets lifted once a player does a full in person ID verification.
Create as low a barrier to entry for new players as possible to introduce them to the sites/games/new software without much effort, while still putting good safeguards in place & helping to create foot traffic/other revenue streams for smaller gaming establishments that won't have online rooms.