Heck yeah! That’s an excellent change.

Canceled or significantly changed flights: Passengers will be entitled to a refund if their flight is canceled or significantly changed, and they do not accept alternative transportation or travel credits offered.

This is good also, that way passengers that just want to complete their journey can accept the delay or flight change.

It’s further good that it’s automatic, but you already know that airlines are going to push hard on passengers with notifications that say “accept [our preferred alternative] NOW while it’s still available” without mentioning that the refund is automatic, if they can get away with it.