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> This law establishes a default position in case no prior arrangement for a medium of exchange had been agreed to or requested in a contract or such a medium of transaction could not be reasonably accommodated.

Yes. I think this is ultimately the crux of the matter, i.e. the moment that reasonable alternative(s) have been offered then the whole "cash is legal tender" thing (basically) goes out the window.

There was an interesting ruling in Europe[1] in relation to Euro cash where it was even ruled that European government bodies are not obliged to accept cash. The ruling basically said exactly what @Dracopheonix pointed out:

"Limitations on payments in notes and coins, established by Member States for public reasons, are not incompatible with the status of legal tender of euro banknotes and coins, provided that other lawful means for the settlement of monetary debts are available"

[1] https://www.cashmatters.org/blog/european-court-justice-deli...