For those of you who remember, horse meat was also packed by the USDA back in the 1960's and the poor and aged received the meat for free.
Yes, this is good for the horses. It restores a monetary value to older horses that no longer earn their keep, and will encourage owners to sell them rather than neglect them to die from poor nutrition and declining health.
As mentioned above, far too many horses have been dumped onto public lands by their economically challenged owners. When turned loose, the horses usually die a horrible death within 18 months.
As to which is smarter, the horse or cow, hands down the cow! Horses are really stupid, but mules are a whole nother story. Mules are often smarter than their riders!