So, yes, the NSF fees compound on people who make honest mistakes, and are particularly harsh for those in financial disarray or who use payday loan lenders that now mostly work online through phone apps and such and simply have you agree to let them take money out of your account directly.
Ultimately though, the banks aren't taking a hit on this. They will increase regular monthly account fees and will also be much faster to shutter accounts and end banking relationships with clients who have NSF charges.
There's ups and downs on both sides of this, but a lot of working poor people will probably pay more fees than before or get kicked out of the banking system.