Bill has presented a worst-case scenario although things may not work out so badly, at first anyway - only time will tell.
He has a good reason for taking that line because the FDA's job is to remove ecigs from the market. If you remember, they did everything they possibly could to do so in 2010, when they seized every import they could locate and attempted to shut the ecig trade down in several ways including enforcement of medical licensing. It should be noted that the FDA doesn't work for public health, it is the legal arm of the pharmaceutical industry and will do everything it can to protect that industry and at any cost. In order to do that, it must protect smoking, since pharmaceutical industry revenues in this area depend on smoking.
However the FDA is under pressure from others and cannot simply ban ecigs, which is what it most certainly wants to do. It can only implement measures that will survive legal challenge. Therefore, we can see fairly easily what it needs to do: start out with what look like reasonable regulations, using the wedge principle, and then gradually tighten the screws. This will become easer to accomplish over time as small ecig businesses can be eliminated first (by fee structures and research costs that they cannot comply with), followed by larger players, leaving just the largest ecig firms and the tobacco giants standing.
The FDA only want to deal with a few large pharmaceutical and cigarette corporations - they certainly don't want the aggravation of having to deal with hundreds (or even thousands) of small businesses. This is not their operational model and in fact it is an impossible scenario for them; dealing with the paperwork from a few cigarette companies is an enormous task that they have a huge backlog with. If for no other reason, they need to cut the workload down by eliminating all the smaller businesses, an easy task when they control the regulations; fees charged for registering, and the cost of research and documentation, will easily accomplish that. Small businesses can't afford the hundreds of thousands of dollars that will soon enough become standard; eventually, costs will rise into the millions as that is how federal regulation works.
It is highly unlikely that implementation of any regulations will be sudden or perhaps even onerous. Their method will be to ramp things up slowly in order to gradually build an enforcement structure and to avoid legal challenges that will delay their task. The FDA's ideal picture of the ecig industry in ten years' time is that it will be owned by large cigarette corporations and a couple of large independents such as NJoy. They cannot now legally eliminate ecigs, but they can make it impossible for anyone except giant businesses selling simple old-tech models to sell in the legal market. Everything else will need to go black market eventually, since it will cost millions to introduce a new product to the legal market and there will be a timelag of years for the permissions.
This situation will persist until there are so many millions of vapers that federal law can be introduced to restrict the FDA's power, and that won't happen any time soon; at least twenty years. Until then, there are a million small battles to fight.