Yeah, AP2 has had this for ages (since the Summer, I think)
It effectively makes Navigate on Autopilot useless, and the 5 second lane-change thing makes lane changes more dangerous than they're worth.
You'll see a warning on the screen if it's trying to take a turn that's too sharp for these regs, and it just makes a shallower turn (scary)
And, yes, insistent nags to hold the wheel. It works though - I've changed my "driving on autopilot" behaviour from just touching the steering wheel when it asks, to just constantly holding the wheel. Whether or not that's a good thing is up for debate...
Overall, pretty silly regulations that actually make things more dangerous for us.