Actually I don't think it's that much of a dramatic change from the current levels:
CAT. HH Points
1 7,500
2 12,500
3 25,000
4 30,000
5 35,000
6 40,000
7 50,000
Waldorf Astoria™ Hotels & Resorts 50,000–80,000
It's just giving a range in each category, probably based on availability. What remains to be seen is how many hotels will jump to the 2 highest levels; and are these levels all for 'standard' rooms, or does the spread take into account upgraded rooms. Until we get more details I'm not running out to proclaim Woe Are Us quite yet, but I might later on.