I think this is a bad move. It only gives more VP controlled by 1 LST-provider, which is something which is heavily contested by multiple persons on this forum in the past period.
And that share will only grow via this route, like a flywheel.
So I am not sure whether this change does right to all concerns mentioned in the past period though.
I am not so sure (but maybe I am reading it differently though) that changing to an autocompounding position was the intended goal of @dYdXFoundation. Maybe some clarification can be given if the change is what they meant to achieve?