Most sites won't have to stop servicing people from New York State because it specifically exempts merchants and consumers from having to be licensed. It's targeted at Exchanges, Wallet Services, et cetera.

The biggest problem here is for Mining Pools.

Sec 200.1
(n) Virtual Currency Business Activity means the conduct of any one of the following types of activities
involving New York or a New York Resident:
(1) receiving Virtual Currency for transmission or transmitting the same;

Without the exemptions that's "everyone who uses bitcoin needs a license" - since it's not just if your thing is based in the state, it's if you're involving a new york resident at all.

That's far too broad. It needs to be more targeted. Rally the troops - we need to submit comment when it opens for comment on the 23rd