I can see this possibly creating a schism.
seriously...i dunno how this is gonna play out. Can't say I'm initially convinced...
Well, let me just say I love SF, but this is the first thing that caught my attention as well. The problem with certain characters, was that there Ultra's sucked (read: not versatile) or didn't do nearly enough damage as others. (Ex. Ken's U1 vs. Ryu's U1) However, the core mechanics were solid, really solid. Footsies got more and more important after you figured out how to avoid most character's Ultra setups. I believe Ultra weren't really the strong point of a match either in high level play, but it was generally a moment of excitement since it generally isn't landed every single match but when an opponent catches you and causes big damage. This new system only seems to be enhancing Ultra's, which at first glance, seems to take away from there uniqueness and WOW factor.
Secondly, the vortex (Akuma's setups, Ibuki's kunai or not knowing which way to block Viper's burning kick) might be easier to handle with Red focus for players with less reaction time or time to study those characters in defending that stuff. IMO, that allows for a more balanced game, where the player is beating you versus his character beating you. I like this trade off quite a bit, and it also is enough to stop the 2 Ultra (besides damage) from being too offensive, it's a welcome addition.
Lastly, there's characters with really situational Ultra's. For example I play Chun completely different when she has U1, as she can go through FB or punish certain moves with long recovery, while Ultra 2 is more of a traditional combo setup. Giving her or characters like Gief both Ultras seem overkill. I mean as a shoto, how do you approach Gief knowing you can get grabbed from being too close or jumping away? Balancing this will be crazy tricky...