Perhaps,
But it is a positive gesture. On my most recent flights to Latin America and the Caribbeans, we did fly out with a few empty seats in the forward cabin. I asked the GA on my last outbound flight and she stated "no more eligible Medallions to upgrade."
Now with this new policy, eligible Silver Medallions might get some of those seats, travelling on award tickets to some of these vacation destinations; not competing with business flyers.