Taking a step back, for those elite players that don't have the financial means to play in a regional league like the ECNL or NPL (costs of travel to New Mexico, Arizona, Northern California, Nevada, etc.) AND don't play in the DA, getting college coach exposure is difficult and only occurs at showcases. College coaches want to see (1) prospects on good teams play against other good teams; and (2) everything occur at one venue. The Champions division doesn't do this because the teams are still required to secure their home fields. This Discovery division fulfills this need/desire.
Based on the article, the two will co-exist, but the cream of the crop from the Champions division would leave and the league would attempt to pull in some ECNL, CSL and SDDA teams. What we have now is teams that think they can play at a high level, but don't want to leave SoCal have CalSouth's CRL, which is basically an "extra league" on top of CSL and SCDSL Clubs without DA status or ECNL teams (big money/costs to parents) that don't get into CRL are left with no options, but to beat up on the lesser competition. The DPL (girls) would find this league attractive.
The ultimate impact to the Champions division is really dependent upon whether the new division is successful in pulling from the DPL, ECNL/EGSL and NPL.