This seems to be replacing separate AAV bonus+separate flight credits, with LPs based on total spend and evenly distributed across each traveler's account. I cannot envision AA offering 5 LPs on total package spend (including air cost) plus LPs based on distance flown, but would love to be wrong!

Seems to neutralize any remaining LP arbitrage from AAV bookings with bulk fares. Hopefully consolidator fares will continue to earn LPs.

According to the FAQs on the linked page, earnings are calculated as follows:

How do I earn miles?
Every passenger that is included in the air portion of the booking will earn miles. The miles earned will be based on the status of the lead traveler multiplied by the total package price excluding taxes and fees, divided by the number of air passengers on the booking.

Are these miles loyalty points eligible?
Yes. AAdvantageŽ members earn at least 1 base mile per dollar spent. Members with AAdvantage GoldŽ status or above earn 5 base miles per dollar spent (1 eligible AAdvantageŽ base mile = 1 Loyalty Point)