United Kingdom
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If the intent was to exempt emergency services then they would have exempted emergency services.
Two way radios are primarily used by taxi firms.
And your last point is weak, there are infinite possibilities we have between the status quo and nothing at all. Clearly I’m not arguing that there should be a free for all on phone use while driving.
Very few taxi firms, the practise has largely died out. I can't tell you the last time I got into a taxi with a handheld radio in it. One taxi firm here still has a large dipole on the roof of their building, but AFAIK they no longer use it.