Yes, there are indeed loopholes. My point is this, we have this already, it works already, and if the government had actually researched rather than read the telegraph, we would have had a system that would be much less shouting at the tides to stop them coming in.
of course your foreign sim didn't need ID, but given how easy it is to find out who you are from a sim, its not really needed.
Moreover, most deliberate public wifi asks you to accept the ToS, so that they can legally cover themselves from what ever you are doing. They are still liable if they dont take "reasonable steps" to stop illegal activity occurring on their service.
Plenty of ways to get it done.