It would be hard to imagine a better recipe for epic failure. It seems that the proponents don't realize that the less baggage it carries, the more robust and easy to use a distro becomes.
I have to say, I'm not entirely sure you've read this proposal. Or maybe there is something that could be more clear? The audience here is really Fedora developers, so it's likely that some things aren't immediately apparent if you're more removed from that. Overall, this is a proposal for significantly less baggage.
And "excitement" is definitely not needed. An operating system isn't an electrical appliance needing new excitement and frills to shift product off the shelves each season. Boredom is a sign of stability and reliability, and those two are without doubt most important features a distro designer can provide.
Well, Fedora isn't ever going to be that completely safe kind of boring. For that, we have our downstream distributions, which are awesomely boring in all the way you describe. Fedora isn't supposed to be that, and is supposed to be in place where we are generating excitement, whether that's at the OS core or further out. But in general, the idea here is to separate out that "no frills" core from the language stacks and other areas where "be up to date" and "make available the exact things we need" are the demands. Then, we can address these needs differently.
If you're just interested in the base, awesome: we will put that together for you in a well-defined way and let you do whatever you want on top of that.
Having the separate ring 1 lets us focus on making that a coherent base which can be enhanced in an cohesive way which doesn't break everything for users as we go from release to release.