It sounds like it mainly applies to commercial use. This really needs to go before the courts and get hammered out, it seems like every day there is something with conflicting guidance on it. The reality of it though, the FAA can't regulate someone flying a RC airplane any more than they can someone flying a kite, or throwing a baseball into the air. I think they know that, and I understand they want to make sure it doesn't impede the operation of normal aircraft, but this is the typical knee jerk reaction of a government agency when faced with something they don't know how to deal with. Unfortunately, I work for the government and I see these knee jerk reactions every day. It'll blow over and eventually reasonableness will prevail.
On the bright side, I'm currently getting my private pilot's license, so does that mean I'll be able to fly anywhere with my quadcopter that I could in a regular plane?