Sounds extremely sensible to me. Everybody wins.
Basically, First Class product remains but at Business Class fares. Business Class passengers, in turn, enjoy the First Class style seats which are on par with what other airlines in the region are offering. So both our traditional Business Class and First Class passengers should be quite happy.
Also a pretty cost-effective way to improve standards, as only the Business Class seats will have to be torn out and replaced with what are now First Class-style seats (rather than a complete replacement of all seats foreward of Economy Class). As always, the challenge which remains is delivering a consistenly quality product.