Local restrictions (like the ones we have in Lincoln) can still make it hard for someone to run a cottage industry baking operation out of their homes.
In Indiana, cottage industry foods can only be sold at farm stands or at the farmer's market. There are also some limitations: no canned low acid foods and for baking, no dairy that might spoil.
If I understood the article, NJ is allowing cottage industry food preparation that is delivered to the customer, as well as farmer's markets and roadside stands.