I don’t think this is going to change much in terms of SEO, it just removes one factor that separated good content from good ranking. This is going to normalize the perception of users between traditional tld’s and modern tld’s because they cant subconsciously decide whether or not to click on something based on the perceived trustworthiness of the URL.
I think that fundamentally it is a good thing for new domains trying to get into a niche. this is going to devalue the perceived “vanity” of any particular url, which is good in a climate where basically any URL is taken.
Right now, you can bully competitors by investing money in expensive URLs. That sucks (unless you have the resources). Just because you own lawnmower.com you don’t automatically make better lawnmowers than shop.lawn-mower-systems.party. However, our brains tell us that you do, because you have a more prestigious URL. Which, if you think about it, is bullshit. All you really have is more resources.