I think this is great news from the ECB, however they have left in a caveat that this applies to players entering the country from 25/4/12 so those already here are eligible, plus this doesn't apply to non full members of the ICC where the qualification remains at 4 years "at the boards discretion).
On another note how many of England’s first choice XI are actually foreign;
1) Strauss (Born to English parents (?) in SA moved to England aged 6)
2) Cook (English)
3) Trott (British born parent)
4) KP (British born parent)
5) Bell (English)
6) Bopara (for arguements sake) (English)
7) Prior (English father)
Bresnan (English)
9) Broad (English)
10) Swann (English)
11) Anderson (English)
So really in an ideal world all of the above would be eligible to play for England by the virtue of having an English parent, I agree when you got to someone like Kieswetter or possibly Morgan the issue becomes more difficult to argue, but would I care if my daughter lived in England for all her life, but decided that she would rather play a sport for The Netherlands (thanks to having a Dutch mother) as she would stand a better chance of playing at the highest level , no I wouldn’t and I would actively support her to achieve her dreams!