I don’t mean to be argumentative since I agree with your general points, but I do think the change will help some families, and I think that is a good thing if only for purely selfish reasons.
As far as I can tell, because the new FAFSA won’t consider some retirement contributions, my D22 will move from receiving a small pell grant (for her freshman and sophomore years) to receiving the maximum pell grant (in her junior and senior years). Of course, it is quite possible that her school, which uses a CSS profile will just reduce other types of aid in response so I’m not holding my breath, but at least for now, I am happy that I do contribute to a retirement account and I think it is a great incentive for middle class and lower income families to try to save in these accounts if they are able. Wealthy and upper income families are already very likely to be able to save for retirement and still pay tuition. The changes to the FAFSA might allow other families to do some of both as well, which I consider a societal good (reducing poverty among the elderly especially given declining social security funds).