I think this is generally a good thing to do, with some caveats that I hope the FCC considers.
For most satellites below ~450km, this is really a non-issue. Atmospheric drag will generally be sufficient to deorbit the satellite in a few years. For big Earth-observing constellations, Starlink and friends, and many small missions, this doesn't change anything. Debris don't really accumulate dangerously in this zone and collision avoidance is a well-studied problem with a lot of people doing great work. The 18th SDS with the US Space Force, LeoLabs, Starlink/SpaceX, and a lot of other constellation operators take this very seriously and do a good job.
For satellites in the 800km+ range, this is also not a meaningful change. The 25-year rule meant that these satellites needed a deorbit plan anyway. 800km is a rough estimate, in real life it depends on the satellite mass + geometry and the solar cycle.
For satellites in the 450-800km range (again - hand waving here) this is actually a big deal. Satellites that would decay naturally between 5 and 25 years now need an active deorbit plan or need to launch lower and keep themselves up with propellant. Small satellite propulsion is becoming cheaper and more available, so this isn't that onerous for commercial operators. But I do worry a little about educational and non-profit launchers of satellites. They'd be excluded from using launches to this orbital range unless the FCC allows waivers (which I'm hopeful they will).
Overall I don't think this has a particularly big impact. It's a sensible revision of an old rule that was a little too lax. But there aren't that many satellites launching at the high end of the 450-800km range without propulsion. The 1000km-2000km area is a more important area for debris mitigation and that was really already covered.
As for the FCC having this jurisdiction vs. the FAA or the USSF, as Spock would say - "it is not logical, but it is true."