I think it’s great! However, I’m not clear how incoming internationals get through the travel bans. Will they get their visas but be forced to delay entry?
I think it should have been a compromise: those students that are already in the US can stay but those who are abroad can stay home and take classes from their home country. Especially since the online schools are limiting on campus residency.
As a practical matter, it is rather likely that many international students not already here will have too much difficulty traveling anyway, so what you are suggesting may end up being the actual result for most.