The CAA had to do SOMETHING and it looks like they have got it about right. Long term, I'm not sure where it leaves airshows in general though.
A lot of the regular airshows do not have a 'sea' nearby and even if they do there are clearly logistical issues with organising a coastal display, not least parking, viewing etc and not forgetting that the safest place to watch an airshow is on an airfield behind the crowd line.
Interesting that the Red Arrows have regularly refused to display at Shoreham due to being (relatively) built up. Maybe the way forward is rural inland sites only.
Can't help thinking this is a freak accident though. If he had rolled out 100 yards further south would have cleared the road and put down in woodland/open ground.