I see this as an absolute win.
We've had no-lock J-frames for a while and that's the direction they were telegraphing with the 32/42 UC series--those were supposed to be J-frame 2.0.
I think this is the first no-lock K-frame we've seen, and while it's in the Classics line it's a regular production gun not a distributor exclusive. It's, IIRC, the first square butt production and pencil barrel (regular, with respect to the Heavy Duty) production as well.
A hopeful reading of this fact is that they're tooling up for no-lock production across the board.
I'd love to see a new 66 2.5" lockless, or 3" 65, or an Ultimate Carry K-frame variety (2" 612 with Novaks, please?). A no-lock 69 would also sell very well I think, as those are popular woods guns.
My SWAG is that the next lockless frame will be the L, to compete with the Pythons and GP-100s.
Revolvers are having a moment right now and I think that's good for everyone. I think S&W is responding to developments from brands like Colt, Henry, and Heritage (Roscoe). I wish PSA would bring back H&R revolvers.