This is a single cohort, and they make no indication that they are changing their policy for future cohorts. No one in the Bay Area should care about this one-off change unless they applied to this batch and are worried about the extra competition.
Why do you wish so?
Well I understand deeply that there's nothing more powerful that in-person connections.
I've witnessed that multiple times when I sneaked into some "exclusive" events in silicon valley.
It erodes some of the Bay Area’s attraction for new talent and new companies.
As someone who doesn't yet own property here, I'm okay with that.