It’s still about half the number of accommodations per meter of train, comparing only the night coaches.
Seat coaches are probably fine, although I think it sounds very wrong to have to bring a full set of 7 coaches through the night just to have that option for the few who want the lowest price possible.
I’m admittedly not at all an expert of train operations, but this whole thing just sounds totally counter to all discussions I’ve heard of actual issues with our current night trains.