I posted about this a few weeks ago.
Bear in mind its only at initial consultancy so it'll go through at least several iterations before wider consultation, so details are obviously lacking - they're just sounding people out first.
I don't think they're saying "you will be able to ride on any footpath" but "you will be able to ride on some footpaths". Which paths they will be? Your guess is as good as mine, but presumably they would need to be reasonably convenient for your everyday biker to use (yes, wide and flat) and, again presumably, they will need to link villages so will follow dismantled railways / widened road verges / etc. This ties in with the Bills general objectives to increase general health and wellbeing, getting people out on bikes, etc.
I think MrSynthpop has it spot on and this is precisely what the Bill is hopefully going to achieve. How its implemented I'm really not sure, but I suppose at some point in the next two years I'll be asked to figure it out
I recognise the need for simpler RoW legislation, but its an extremely complicated area; you can't just put your hand into the bag and pull out a few laws you don't like, as in 10-20 years you will end up with repeats of things like Bridleways turning to Footpaths at parish boundaries, people buying houses and not knowing theres a path going through the garden, and so on.
I think the next year will be fairly interesting for the MTB community as the WAG may open up the FP network to bikes, as its simply the easiest way to implement the Bill without having hundreds of conditions / caveats.
Feel free to ask any RoW related questions BTW