The FAA was between a rock and a hard place and Congress certainly didn't help, nor did AMA. To cut back commercial requirements would mean creating a whole new class of commercial drone with the attendant regulations, studies, impact statements and documentation. The use of hobby drones in commercial endeavors was already illegal but totally unenforceable since even the AMA backed off from pressure on the manufacturers and sellers and even decided to go along with it.
The hobby drones were never illegal and still not illegal, even when the FAA claimed they were. And many flying under the AMA rules will not be bound to FAA regulations as they will be model airplanes. And 112-95 did creat a new class of commercial drone. I don't recall the name of the class but basically those weighing less than 4 and a half pounds flying under 500 feet. And they may be regulated by some agency other than the FAA.