It's not a blanket ban – UberBlack can still operate, because UberBlack follows the regulations. UberPool isn't banned either.

It's only UberPop, which tries to operate without a license as a for-profit service.

And imagine a UberPop driver hits you with his car – he would be not insured (regular insurance doesn't cover commercial activity), so you would have to pay your own medical treatment (getting broken bones together, etc) on your own, because the driver had no license.