Depends. Can anyone with the know-how create a custom way of taking a screenshot/capture independent of all others or do all methods have to use an immutable function as the base?
If the former, i agree with you. If the latter, you're kinda wrong to believe so.
Let's take a step back. If we allow Microsoft Recall to take snapshots of everything, now there are two places to protect your information, and one has historical information.
Why would you want that? Even if we somehow prevent malicious software from taking screenshots, we now have to worry about malicious software breaking Recall or any servers that have Recall info. That's a much bigger attack surface, especially if there's a server involved.
If you want a legislative solution, fix our privacy laws, which would likely kill this project by making it unprofitable for Microsoft. The solution isn't to fix Recall, it's to not use it and/or make such privacy violations unprofitable.