My read is that this just eliminates the attempt to boil all of the raw data down to a single number. Which loses much of the context.
As the quote from Yale says, this really doesn’t do anything but collect information that most colleges already used and puts it in a standardized presentation format. Each school probably already had a similar tool - now every school doesn’t need their own way of doing it.
If I read it right, the info will now be available to students/parents, so at least there’s more transparency. (Though most parents and students probably know the demographics of where they live/go to school)