Many of the successive plans that AF adopted have been based on some "idea" that was not stupid, but the problem is always consistence and execution. I strongly believe that anything too complex is impossible to execute at AF for various reasons.
This new plan seems far too complex to implement. The luggage issue will be a nightmare. I guess that you will be able to buy "luggage" online or at the airport. Judging by what happened in the US and by AF poor record on IT and training staff, it will not be easy to implement it at all concerned airports. Having a moving curtain on domestic flights will not be easy and the possible addition of paid food/drink will make it a nightmare. I am not saying that it is impossible, but why make it complicated and prone to so many potential problems when you can make it simple. It sounded attractive to offer both a legacy premium service and a neo-LCC service. Now we are talking bout a pure LCC service and a neo-LCC service (and possibly retain the premium service on European feeder flights). This may sound as bright ideas but is too ambitious to execute for most airlines and especially AF.
Maybe they should just keep LCC domestic and Premium plus LCC in Europe.