"No?
Since, you know, DK still gets small-stepped, Grab Release infinites still work, and the ICs keep theirs.
It's no better than a selective ban that drastically changes the metagame."
Just because an infinite is still in does not mean it did not get weakened.... Think about it this way, lets say your goal the entire stock is to infinite your opponent, and if you land it you take the stock. In the original game, they would have to rack 100% damage on you before they can kill you, giving you ample time to land a grab before they can achieve that. However with 1.1 your opponent only has to deal 80% percent damage before killing you, giving you less time to attempt to grab them. Essentially
1 grab = death no matter the damage ratio, but the person who is attempting to kill without infinites has to hit less times to kill on higher damage ratios.