I think it would actually be "a bit" controversial--just like the phrase he used. It would certainly be different from 10/25 raiding in that the gear we would be getting and the challenge associated with it would be markedly different. Ten man gear was easier making it especially tedious back in Wrath; this would be a touch better. We would gear faster, we would likely get burned out faster, but they could always argue that giving us "more things to do" isn't a bad idea.
As you point out, it definitely reinvents the 25m PuG and that just has to be viewed as a positive. It also cannot destroy 10m raiding while it also buffs 25m. It's only the burnout. I admit that I'm not sure how I'd feel about raiding 4 nights a week instead of 2...