While I agree this is a wise decision, it will most likely turn out to be a mere formality. I think, especially, outside of Norway, Martha Louise will still be referred to as "Princess" because the public will see her as a princess. She will probably have to publicize her appearance without the Princess designation, but the press will still refer to her as "Princess" and her audiences will not give up having a real "princess" in their midst. (They will probably not be aware of the royal ban on using the title.) I can see the headlines now, "Martha Louise, former Princess of Norway, will speak at, etc etc..... I'm probably wrong about this, but I still think her fans will ignore the ban.
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The Norwegian Royal Court announced today that Princess M-L will only use her title privately and in the event she represents the Norwegian Royal House.
Source: www.kongehuset.no
A wise decision.