Two things: this is an accepted practice all over the country and the traffic code has its own traffic sign for it when it is permitted. And the suggested amendment would only make it legal in situations where there would remain 1.6m of space for pedestrians, wheelchair users, and strollers. So the car parked in the image would remain illegally parked.
Munich has made a mistake of tacitly allowing this parking practice in areas where there isn't enough space, motivated by keeping roads accessible to first responders, which is not nothing. They have clearly made a mistake if everybody still owns a car when there s above average public transport. And people will still park like assholes. Under these plans (they haven't been approved yet according to the article), the assholes could be punished though. It would just not give fines out to everybody. This is a compromise solution in a bad situation.
I would amend the plans in two areas: the grumpy people of Munich should be allowed to smear dogshit legally on every car that doesn't leave 1.6m of space on the sidewalk (the article mentions a similar occurrence). And giving up car ownership should be rewarded with free public transport for a suitable amount of time.