Terrible for the environment. Lets apply rules with common sense [1]. As much I am for privacy this kind of interpretation is very bad.

1. https://study.com/academy/answer/summarize-all-about-a-dog-b...

The device could still be software-updated then sold, or sold outside the EU. Nobody is saying that it must be landfilled.

Sure, that argument could certainly be made. But unless someone is taken to court over this (or at the very least, threats are made), I think people will continue selling such phones. After all, most sellers aren't going to realise their products are in violation of the law.