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No, two way radios are by and large used by the police, ambulance and fire (and certainly when it comes to the police, they like to exempt themselves from legislation they find inconvenient - e.g. for the longest time, motorcycle visor tints were illegal unless you were the police in which case they were just fine!)
Also, alas, politics/legislation is the art of the possible, and perfect is the enemy of the good. Doing nothing because it would be politically impossible to ban all phone use while driving is a worse state of affairs than at least banning handheld phone usage. Of course it bothers me as I'm frequently a vulnerable road user (I own several motorcycles, and do all my local journeys on a pushbike or walk, and I've been hit by drivers whose standard of observation has been piss poor) but at the same time I have to recognise that at least a ban on handheld phone use will reduce my chance of getting hit, even if (at the moment) all phone usage isn't banned, and so while it is not perfect it is better than nothing. And more power to Mikey for dobbing people in.
If the intent was to exempt emergency services then they would have exempted emergency services.
Two way radios are primarily used by taxi firms.
And your last point is weak, there are infinite possibilities we have between the status quo and nothing at all. Clearly I’m not arguing that there should be a free for all on phone use while driving.
Very few taxi firms, the practise has largely died out. I can't tell you the last time I got into a taxi with a handheld radio in it. One taxi firm here still has a large dipole on the roof of their building, but AFAIK they no longer use it.