Sunfish, surely in this case it is less about making us into criminals and ensuring we take the correct action? There are plenty of Pilots who simply don't want to "Make a fuss" or "Deal with the paperwork" this way it's set out in a clear manner that instructs them to declare an "Emergency" which then gives ATC the full authority to do whatever is necessary to ensure you get down in a timely manner.
I forget the specific incident and I'm sure there's been more than one where a Pilot hasn't declared an actual emergency and should have which resulted in the situation being far worse than it should have been because ATC either weren't entirely sure it was a full emergency or had their hands tied in what they could do for you considering it hasn't been declared an emergency situation yet.
I'm not fan of CASA but this one doesn't seem so bad, perhaps poorly worded for the lay person though.