First, let me add my "atta boy" for submitting this proposal.
It's ironic that the LSA community is being used as an example of the idea working. LSA's will be the most hurt by the FAA accepting this change. I think that LSA are great planes, but much of the demand has been driven by private pilots stepping back away from their Part 23 aircraft to avoid the hassles of a physical. This will lower prices for LSA and raise sagging prices for Part 23 aircraft.
Still it's the right thing to do.