I find the suggestion that the Government was pissed off at Elon for launching his roadster to Mars oddly compelling. SpaceX does make a lot of the "entrenched" space capability look bad in comparison.

That said, I think a simple lawsuit would settle this issue and help give clarity to the powers granted the NOAA. I expect a number of Cubesat experiments might get caught up in this escalation of power as well. And while you're more likely to get someone to say that a cubesat with a re-purposed 10MP cell phone camera is a "remote sensing" camera I think it would be difficult to convince a judge and jury such cameras were a threat to the national security, regardless of where they were pointed.