Yes, it means that if you consent for cookies, you don't get annoying popups everywhere. Or, what actually would be interesting, a law explicitly disallowing "please enable X-Allow-Tracking for this website" popups.

Right now the web is broken anyway - some pay (in data and ads), some are free-riders. And everyone is pested by cookie popups. This "no tracking unless required for functionality" would make it nice to change a model for actually paying for use. (It promotes quality content, less distractions, less clickbaits; and thinking twice if you want to spend more time on yet another meme aggregator.)