Yeah to be honest, if I hear about a law in Australia that affects technology, my default position is that it's probably a bad one. That's a stance I've developed thanks to long experience of it mostly being the case that our tech laws are dumb.
A more recent example: the News Media Bargaining Code. Literally requiring Google to pay Murdoch's news outlets for sending traffic to them. If there was any sensible financial transaction, it would be the other way around.
Or for something under the Labor Government, the social media minimum age laws, which were rammed through without time for real public consultation or debate in Parliament.
Personally, if I'm doing intervals, I don't stop my watch in between. Mostly this is so my Garmin-recorded PB doesn't automatically update. I don't want it telling me I beat my 5k PB because I did 12×400 m in 90 sec, ignoring the 60 sec rest between each.
But it's also so the overall activity pace doesn't look deceptively fast to friends on Strava. And it's also so that I can use the "lap time" of my rest "lap" (I hit the lap button manually, when doing intervals, rather than using the automatic 1 km laps) to time how long my rest should be.
Delete the activity already recorded? No, I wouldn't. If you've broken any PBs, I'd go in and manually revert those, and maybe add a description to the activity explaining that it was intervals.
I do pause my watch, without shame, on my longer runs, when I'm stopping for water, or to cross the road at lights.