ROTFHWL
Actually, putting this under the FAA is a big step forward. Before now, space launch has been considered to be on the same level as ordinance testing in terms of safety. That is one of the huge legacy issues with launchers. They evolved from artillery rockets and most people in the industry just tend to think of them as larger versions of military ordinance.
To start treating launchers as a transportation system is a whole new paradigm that is long overdue.
And exactly what added value does the FAA bring to the table?