Currently most residency programs use a "cutoff" score of Step 1 test to select the pool of applicants to be invited for interview. Once Step 1 test result becomes pass/fail, the residence programs will definitely adopt another critiria to serve the same purpose. Most likely they will use Step 2 score!
In fact, I personally think Step 2 score is a better criteria to evaluate the clinical knowledge of a candidate for residency than Step 1 score.
The only caveat is it might be a little rush for those medical students, who are unwilling to take a gap year. They will have to complete their Step 2 Test before MS4 year begins. This will definitely build up some pressure to the medical schools still on traditional curriculums to reform and to start their clinical blocks early.