First up, it's not that I don't like Front Panels! Rather, the idea comes from the recognition that, as evidenced by a fair number of ideas in the Idea Exchange, FPs often add unnecessary work to developing VIs. I was trying to pull a number of different ideas together into a solution, sparked by reading this idea which suggests adding yet another layer to a VI - and questioning whether we can reduce complexity instead of increasing it.
There's been some discussion on how to limit the FP to show only what's needed for the user interface (e.g. here). Having unneeded (from the interface point-of-view) controls and indicators on the FP means we need to work around issues such as edit-vs-run-time displays, setting up tab orders, rescaling controls (but only some of them) as panels change size, disabled code, and so on. The basis of my suggestion is not that we shouldn't have FPs, but that FPs should only contain what is needed to be seen by the user.
Secondly, the data that needs to be seen during development or debugging is often very different again. When we use a Probe, we essentially create a virtual indicator. Take the Probe Window slightly further in its development, and we now have a second FP, which contains another set of controls/indicators for showing, or setting, the data during execution.
Also, for many VIs, the variables that are passed through the conpane interface are not required to be shown in the user-interface - Error clusters for example. It makes sense to be able to link the conpane directly to BD controls, and therefore there is no need for the controls/indicators to appear on the FP at all - many subVIs without user interaction wouldn't need an FP defined at all. To me, the conpane has a much stronger link to the BD than the FP, as it is there to provide the programming interface to the code. The downside would be that it is perhaps more difficult to find terminals on a crowded BD, but that could be enhanced (e.g. mouse-over the conpane, and everything fades except for terminals).
Perhaps there would even be the opportunity to see the FP as a virtual cluster.
The LV paradigm presumably arises from the concept of Virtual Instruments, where the controls/indicators are what you define your instrument by - and much early code was all contained within one VI! This idea suggests that LV has perhaps grown past that stage, with far more emphasis now on subVIs, classes, libraries, etc which are maybe more like patch panels or breadboards (still thinking as an engineer!) - things that are hidden from the end-user. I don't see it as such a radical change - more a response to the way that LabVIEW is being used anyway - to make that process easier and more transparent.