Granted, Art, we need to see how it plays-out. As you say, there is a risk that it will have limited practical impact near-term, but it's very-much a step in the right direction, imo.
At the very least, it will give trainers more options, in terms of how they campaign their horses.
Insofar as decent novices are concerned, the hurly-burly of a good handicap, is just the sort of race a trainer might target, to see how his horse will cope with a big/packed field at the Festival. It may be preferable to a trot-round in a 3-runner race, against vastly-inferior opposition, who are only there in the hope of pilfering some decent prize-money.
Poorly-contested Graded events can often be punitive anyway - especially smart hurdlers going chasing. 'Classy' novices with the right kind of profile, can be given marks in the 150-range after winning a couple of weak Graded races before December. They get those kind of marks, because the handicapper has nothing much to go on, and he won't take any chances.
They actively discourage novices from running in open handicaps (for the obvious reasons) but oftentimes, horses are thereafter quickly exposed as not really good enough for the better Graded novice races either - rendering them classic 'No Mans Land' cases (Ballycasey would perhaps be an example).
This is scenario that can take a long time to correct too, and it's all because they win too early, at a level they can't sustain over the course of their careers. Some connections might welcome the opportunity to run in valuable handicaps instead of Graded races, as it might result in more realistic handicapping of their horse, than would otherwise be the case, in a poor Graded event.