Hopefully the change will make NorCal HS hockey less convoluted. They have NorCal HS hockey where most clubs have a team. On those teams are tier players (including AAA from what I was told). The San Jose has their own HS leagues including JV, Varsity, and pure HS. I'm not sure if any boundaries are enforced except for the pure HS league.
I see this as a positive for most kids. Additionally if a NorCal AA Midget team is unworthy in CAHA eyes, then they can move to A level.