I think it's absolutely the wrong direction for a server like Icecrown to be headed.
It puts newcomers to the server at an extremely steep disadvantage compared to the server's thousands of older, veteran players, and it's another one of those things that might dissuade people from leveling professions on their alts, or even leveling alts entirely.
Forced 1x Prof rates on a 7x exp server will also basically kill any realistic possibility whatsoever of players concurrently leveling their professions alongside their actual toons. This is something you see players do with crafting professions like Tailoring, but much more commonly with gathering professions like Skinning/Mining/Herbalism, and especially with secondary professions such as Cooking and First-Aid (something certain classes like Rogues and Warriors can depend a fair bit on).1x Prof rates will make it so players won't be able to keep their professions up to date with their level without significantly gimping their own leveling speed, and you'll have a situation where the mats from level 25-70 zones will all have to be farmed by level 80's instead, which, practically speaking, will shift the AH monopoly on these mats even more into the hands of botters/exploiters.