My reading of the bill - which is at least as confused as anyone elses - is that if a film has as its "sole or main purpose to—

(a) demonstrate any product,
(b) advertise any goods or services"

then it is exempt from a PEL whatever it contains (play, dance, music, gratuitous violence)

Schedule 1, which you refer to, has to be read taking account of the exemptions defined elsewhere.