I was defending it ;)
I find it absolutely hilarious whenever I see it - but simple laws with "silly consequences" are better than complex laws that are difficult to follow, let alone enforce. Not to mention having to come up with and define products that would fit into the exceptions list, and investigating whether or not the product actually - blah blah blah. Bunch of overhead.
Better use of tax payer money to say "if it contains one of these allergens, say so on the packaging" and be done with it. No questions asked and it doesn't complicate the law to avoid saying something silly like "peanuts may contain peanuts".