I think you are misreading the article. Currently, when the government seizes a firearm and then returns it to its owner, it does not perform a NICS check to see if the owner would still be able to purchase one. They just give it back. Under the EO, Holder wants to institute those checks--which are no better nor worse than the checks performed now. I don't like it, but I'd rather die on the hill of eliminating NICS altogether than to eliminate one tiny subset of those checks.
I mention this separately only for clarity; the point above was best made talking about only one instance where new background checks are to be instituted. When a firearm is seized and then NOT returned to the person from whom it was seized, but transferred or sold to another person, NICS checks are not done under the current situation. Holder is proposing that the receivers of those firearms also be NICSed.
The real tragedy is NICS, not the arrangement of these particular deck chairs on it.