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More likely, a lower court shoots it down, and there's no basis for an appeals court to do anything different. They tweak it and try again. That one also fails. Try again.
Eventually, they get something that threads the needle. This is how the "Muslim ban" went.
There are two other factors at work:
Even if we assume they're just going to bypass the usual ladder up the federal court system, they can't do that on everything just as a practical matter.
I enjoy the notion that they would argue that undocumented immigrants are not subject to US law in the fashion that diplomats aren't subject to US law, since that would effectively prevent anything except deportation as a punishment for crimes.
"Your children can't be citizens, but you can murder with impunity until we ask you to leave".
I concur with your interpretation. But as for your final line, I’m not sure why this interpretation is unfortunate. We need to streamline and overhaul the immigration process for sure, but why is encouraging unregulated immigration a good thing?
Oh yeah, that’s definitely a bad outcome, I agree. Thankfully retroactive laws seem to be much harder to pass.