I have to say, I really do not understand why "just use common sense" is such a common refrain in responding to questions. I see this from both staff and community as pretty much a response macro to almost every question.
If people were, on the whole, inclined to use common sense, we would not be here needing specific and very granular bulleted list of things that are or are not permitted, including exceptions. On this basis, it is my personal dream to one day see people stop using 'it's common sense' as a response.
That being said, I'm conflicted about this particular change.
On the one hand, I have seen countless situations where a carefully crafted character arc has been torn asunder overnight with no real roleplay to speak of because someone goes, "And just before they killed me, I learned they were a sharran/warlock/banite/devil/rakshasa". I like having the option now (by virtue of effectively expanding the 'forget window') of being able to protect (or try to protect) that by actually killing the character.
Unfortunately, this adds greater weight not only to death, but to pvp and mechanical capability. I just got finished reading a recent rules update where the focus on mechanics over written narrative roleplay was lamented and cited as a reason for the change. Two, three days later, I now have the ability to delete your narrative and writing by mechanically sending you to the fugue plane. You now have no recourse in this situation besides 'avoid this area for a few days' and 'don't interact with this character' for a few days. Bad actors can now isolate characters, use mechanical power to kill them, and be further insulated from recourse than they already were. The only real defense to this is OOC avoidance, or focusing on mechanics/system mastery and being quick on the draw to avoid losing. Forget 'how does this nerf clerics'. How does does this help fight the cheesy win mentality we struggle with? I foresee this just reinforcing a focus on mechanics and power over text and narrative. That's a shame.
I have another concern as well. With as many statements as I'm seeing lately referencing the logistics of dealing with misbehavior (the logistics/time of enforcing the 'don't ignore npc' rule mentioned in this thread, the logistics/time of handling firstlevel requests from another recent policy change, etc.), I'm kind of wondering about the benefit of this change to the staff end of things. Do we not forsee this change creating more administrative work for DMs?
Consider the following:
Say I'm Shasta Rakshasa. Someone sees past my purrfect disguise. I kill them. They are now prohibited by policy from remembering that I backhanded (see what I did there?) them, the secret they discovered, etc. Let's say they, by malice or mistake, mention something of this in character. Someone in the know reports them for it. Are we not now in a situation where the DM team has to go do a bunch of crunchy log diving and investigation and, effectively, retrospective roleplay audit that is a logistical nightmare? This example is a simple situation and it's already getting time consuming to deal with. Imagine how much worse it gets across multiple parties and timezones, tracking the propagation of information that was put out there in a matter that was a rulebreak.