First of all, skaters can still take freeskate tests at a test session. The ability to submit competition results for test credit is just a different option.
Secondly, all of the freeskate tests (including Adult tests) will comply with the well-balanced program rules and be judged on a [-GOE]/[+GOE] scale. It's supposed to take out some of the subjectivity.
IMO, the comp=test option is more affordable for the competitive skaters. They can "skate up" at competitions with the program they'll use at the next level. If they do well, they can get the credit and move up. There's no need for separate "test" and "competition" programs, which saves money since they don't have to re-do choreography.
For the more-recreational skaters, they can still test at a test session. The "With Distinction" label bugs me - it brings competiveness into the test structure, which will be discouraging to those skaters who can't skate twice a day, six days a week. There are some judges who won't be willing to score higher, so it will be interesting to see how many people get those. I really, really hope they don't publish that label in Skating magazine - it'll be a discouragement for those who simply get a "passed."
We have very few skaters in our area who skate Test Track events at competitions. It's looked down on because of the name. That might change with Excel, we'll have to wait and see.
I wonder what instructions the judges are being given for the new testing structure?