This is certainly an improvement over the previous status quo where the rules forbid washing the feet of women but the Pope was doing it anyway and no one was sure what they were supposed to do.
The question here is whether the foot washing at Mass on Holy Thursday is supposed to be reflective of the Jesus washing the feet of only the apostles (thus Catholic men only) or him commanding the disciples to go and do likewise to serve others (thus everyone). Pope Francis has decided to allow bishops and priests to make that decision rather than mandating the former.
I don't understand what appeal the former interpretation, as an interpretation (as opposed to 'as 'the way it's been done''), would have to nearly anybody, honestly.
I think the former is a better interpretation of what the Mass of the Last Supper is as a practice. Mass on Holy Thursday is a commemoration of the first Eucharist and the foot washing ceremony is a commemoration of the first one. I don't think it makes sense to interpret Jesus's command to go forth and do likewise to be about foot washing itself so much as service in general. Hence, the older rules applied to the foot washing at Mass on Holy Thursday, not to forbid a priest from washing someone else's feet in general apart from any religious rite.