I can imagine those kitchen slop containers will get mighty smelly between pickups, especially in the summertime. As to the rest of it, our municipality already does much of this, and it’s not really such an inconvenience. Technically I think they can fine noncompliance, but I’ve never heard of it happening. We don’t dig through our trash, we just separate things as they are discarded. The biggest inconvenience is that we don’t have a good place to accumulate the recyclables before schlepping them out to the bin in the driveway. We have 3 bins: co-mingled recyclables, yard waste, and all the other stuff. Our township has an arrangement whereby we get points according to the weight of recyclables we put out on trash day. Points can be traded in for discounts at some local merchants. I’m not entirely convinced the economics of the whole scheme work, but I have bigger battles to fight than this one.
I've read a time or two that a lot of the "recyclables" end up in landfills because it's still not economical to reprocess everything, and often not enough firms that reprocess it all.