I think you hit the nail on the head. This is a big improvement for the low-status guy currently flying UA, AS or WN. Probably not anything to jump for the AA Exp's or 1k's since the route map is so limited. If you're an MVP or UA Premier that never gets upgraded however its worth considering.
While you're right that main select won't have empties anymore you're also getting the chance to fly in F for only $39 o/w (current M-S to F u/g charge) and its a fantastic product for a 500-600 miles flight.
For those that can hit the 25k in cc spend and take say 5-8 west coast roundtrips/yr that = $1000+ spend with the new VX plan they'll earn status get free bags, free food, free drinks where as with UA/AS those 500-600 mile o/w's would earn zilch for status.
Even better, $1000 in annual airline spend on VX(assuming you could do $2k/mo cc spend) spread over 3 years would earn
$25k x 3yr CC = 75k VX Points
+9.25pt/$ x $3000 =~30k VX Points
105,000 gets you 2 J SFO-LHR on VS if you can cough up the $1200 ea in YQ. An interesting value prop for the guy that needs to fly up and down the West coast every other month.