The NPPL(A) microlight to SSEA route still exists; it was never removed, just limited to non-EASA aircraft. However, an NPPL(A) SSEA is still a sub-ICAO licence, is (mostly) confined to UK airspace & can't have any instrument rating added.
The CAA's proposals are short on detail but it seems the intent is to allow pilots to start with a simple recreational licence & add further classes & ratings over time. It doesn't seem that complicated & certainly simpler than the mish mash of legacy UK licences & legacy EASA licences.