That's not how domain-validated wildcard certificates from any CA have ever worked, and it's not how any proposed wildcard-supporting future LetsEncrypt would work.
I can, today, get a valid certificate for myname.github.io (getting GitHub to serve it is a different issue, but from an MITM, proof of ownership, and CA/Browser Forum standpoint, it's properly assigned.) That's not surprising or weird, and it's exactly how it's supposed to work.
A certificate for myname.github.io does not give me a valid certificate for someone-else.github.io or github.io. Similarly, a certificate for '* .myname.github.io', which can also be procured today from dozens of CAs, doesn't cause panic or change the situation at all. I just can't get it from LetsEncrypt.
If I can only prove control of 'cs.mit.edu', I can get a certificate for '* .cs.mit.edu', but not all of 'mit.edu'. If I can prove ownership of 'mit.edu', I can get a certificate that covers '* .mit.edu'. This is how it should and has always worked. It just doesn't work via LetsEncrypt.
Basically, heavier authority moves right, never left, in wildcard certificates.
(Edit: HN eating asterisks)