I don’t see it as being ridiculous.
Going from 5-4 is the biggest single jump a referee will make in their career. It’s moving from county FA to national FA, from recreational football to semi pro, from free entry games to ones where spectators pay their hard earned money to come and watch.
It’s clear that if you get a 3 across the board you won’t get promoted. Therefore you need to find at least 50% of the competencies that you do better than that (can be less if you are getting 5’s in areas but I’ve not had one in 3 observations yet). I’d say the bar is now higher to reach the standard than it was before, but I don’t think that’s necessarily a bad thing, hopefully it will cut down on the number of referees coming back down to 5 after just 2 seasons because they are out of their depth.