What do they propose doing about session cookies? Web servers, especially IIS ones, have no proper control over those: they are even issued as you ask if they are acceptable.
Users cannot, by and large, distinguish between "real" cookies (which MAY involve privacy issues but likely do not - third party cookies excepted) and session cookies, which are essential to keep some sites working.
Cookies have always been a user-acceptance thing, a fact that Firefox has long offered management for. Previous proposals by UK, going back several years, had no idea about what cookies were nor how they were handled.
As to google's involvement - RUN AWAY!
I supose they will go after javascript too? Far more dangerous than cookies! And the BBC site says it needs javascript in order to feed you moving pictures! Good old NoScript!