Yow, you're right, that's insane. What can the law do when influential players on both sides of a transaction are so corrupted? I guess put a couple of years' time limit on the non-compete provision--unless the guy was fired, in which case it's 5 minutes!
What can be done? Lots, but companies have to get off their butts and manage their intellectual property. Outside of a few instances I know, most companies play real loose with managing IP.
I like one ruling I read about:
Yes, a non-compete is enforceable, but only as long as the original company continues to pay all salary and benefits.
Personally, I think anyone even proposing anything resembling a non-compete or a NDA should rot in hell and die in poverty.