This is classic anti-regulation BS. I would like to see a regulation which did not have this issue brought up against it. Heck, isn't this the core of the anti-regulation camp? Clearly though, regulations have not destroyed the world...
Technically, it will be the courts who (ultimately) interpret the gap, and it's worked so far for other standards like 'beyond reasonable doubt'. Courts have a tendency to be less capricious than a regulator.
I'd even go so far as to argue that "reason" is one of those things where specific examples can illustrate, but no more. Especially with regards to technology -- what is reasonable today, can be unreasonable tomorrow (eg: SHA1).
In the meantime, I'm positive that as of right now, 99% of the interpretation is performed by the data processors, and in most cases to their own benefit.
The regulator interprets the gap. "Planet-sized gap" means the regulator can choose to be lenient or capricious based on their own preferences. That kind of uncertainty is anathema for modern businesses. (It's also beneficial to those who pay to build relationships with said regulators.)