Doing something that seems like a step in the right direction seems a LOT better than doing nothing because it's not enough to fix it all.
I doubt that it is a step in the right direction.
It asks colleges to send a clear message that admissions officers won’t be impressed by more than a few Advanced Placement courses.
Some applicants will try to stand out through athletic accomplishments while taking a moderately demanding schedule. Other applicants, who are smart and studious but not athletic, will load up on AP courses. I don't see why the latter group should be singled out as problematic.
If there are many more applicants than seats, I can't think of a better way of admitting people than the quality and quantity of academic output. People are not forced to apply to the most selective colleges, and most colleges are not that selective.
