I think the Army have debated this long and hard over many years and they have come to a good compromise. None of it was a surprise. General Jackson spoke well, candidly and with deep knowledge.
He also made a clever point. The real change is not the infantry issue but that of SF/STA (which he dwelt on for perhaps too long, and he knew it, going so far as to identify hitherto quite secretive roles and players). This is the real enhancement to capability, the success of which will depend on (inter alia) achieving Network Enabled Capability. In other words - Mr Hoon, we've done our bit now cough up the dosh to achieve something which the RAF and RN take for granted (without using the fancy terminology).
I suspect a key trigger to the timing of this initiative is BOWMAN ISD (and that of several other key projects), leaving the Army Board with the high ground and pointing the finger at the politicians (not the procurers, who can only buy what is endorsed and funded). But, that slightly outdated system is only an enabler, not the solution, and I bet General Jackson is glad he's not responsible for delivering that little baby.