No the proposal does not stop operation or basing of N Reg. In fact it merely states that EASA want oversight of the maintenance and oversight of the licensing. This is an improvement over other proposals that wanted rid of the N Reg completely.
If you want to be based in Europe for more than 90 days the EASA wants oversight. If you are visiting like the airlines then oversight is maintained by the FAA.
I have not read anywhere that EASA consider FAA maintenance or licensing inadequate just that the FAA have admitted they do not maintain oversight of non US based aircraft or crews and so EASA want oversight of aircraft permanently based in their territory.
So the N Reg guys now have what they want which is to continue operations in Europe and EASA have what they want which is oversight. What is wrong with that?