It's interesting. They really do not want to give up shunning as a way of controlling behavior. The letter explains that they will try really really hard to be as fair as possible and that young people who are DF still have family support, but they are pretty clear that they are not going to abandon shunning. They are offering to make it less onerous, but will not give it up entirely.
I hope the response to this letter is that they encourage the WTS for taking a first step, then tell them that it is not enough. "We shun, but not as much as we used to" is not acceptable when you are asking the government to reinstate a recurring million-dollar gift.