This change seems fair to me.
The 'old' SWU's were treated equally for CP, GP and SP's... not too fair IMHO.
A 100k a year flyer should have a better chance of getting an upgrade than someone who logs in 50k or 25k/year.
Note that this rule change does nothing to the number of paying Envoy passengers out there or the number of Envoy seats available so your real chances of getting an upgrade are the same as a CP, but perhaps reduced if you're a GP or SP. Now, you will just know at your 7/3/1 day window or sweat it out on the day of travel instead of knowing well in advance as was often the case with the 'old' SWU's.
Also note that this 7/3/1 day window only applies to discount tickets. Full fare coach (Y&B fares) or paid Envoy (J&C fares) can still be upgraded with a SWU anytime in advance if the seat is available.