Florida is setting up students to fail?

In the Orlando Sentinel, there was an article about some legislation in Florida which will do away with placement tests and allow students to enroll in credit courses.  It goes as follows: 

Starting in 2014, a large segment of students will be able to immediately enroll in college-level courses, regardless of their academic abilities. They will not have to take remedial courses or even a placement test, which is required by community colleges to detect gaps in learning.
The goal is to allow more students to start earning college credits — most remedial courses do not carry credit — and study fields that interest them while also offering them "support" services such as tutoring. This way, state officials said, they can move more quickly toward a degree while simultaneously bridging any learning gaps.
The changes focus primarily on the state's 28 community colleges. Only one public university — Florida A&M University in Tallahassee — is allowed to offer remedial classes, which also are referred to as "developmental education" or "college prep" classes.

When you get politicians involved in education, this is what happens.  This looks like a potential huge problem for Florida.  Most of the educators seem worried about this formula.

Research shows a lot of students overestimate their abilities. If they fail courses because they misjudged their skill level, it could be discouraging. Some students might drop out because of that, explained Borglum, Valencia's assistant vice president for curriculum and articulation.
And bad grades would hurt students' GPAs and their eligibility for financial aid.
Although students can retake courses, that gets expensive. After failing a class twice, the cost of taking it again more than triples because Floridians are then charged regular tuition rates instead of a discounted rate for state residents.
"Students are going to be expected to really understand the consequences of their choices," Borglum said.