I think it is a good decision, and have been asking for it for years.

We often see lower league teams holding out against bigger clubs, getting the replay then loosing 4-0 or something. Much more chance of a club like Newport beating one of the big teams by holding out and taking them to penalties.

Also the vast majority of games in the cup are just fixtures against a similar club, how often do we just play other championship clubs in the FA Cup
We play out a boring 0-0 or 1-1 against coventry or someone, to a half empty stadium, and then have to do the exact same thing in a couple weeks. a penalty shoot out would at least make these games a bit more interesting, and give my kids something to enjoy before the drive back home.