This sounds like an interesting idea and will probably make life easier for recruiters. I don't know how it'll work out for candidates, though. If candidates can retain their individuality despite the standard format -- as the 'The CV is Dead - Long Live the iProfile' video seems to indicate -- then it should be okay. If not, it'll commoditize them and that's not good.
Since I haven't actually seen the iProfile template -- you can't unless you sign up and they don't have any samples you can view -- I guess I'll just have to wait and see (or, of course, sign up and take a look).
That said, the good thing about the iProfile standard is that a whole bunch of recruitment companies have signed up to work with it. Without that, it'd be no better than your standard Seek, LinkMe, or SixFigures online profile: good but maybe not as widely available as you'd want it to be. Also, the privacy and viewing controls that this system seems to have are really nice too.
More generally, I like the fact that this announcement evangelises the use of online CVs to the Australian recruitment industry. So while all recruitment agencies won't be using the iProfile, maybe they'll start to pay more attention to things like LinkedIn profiles and other social media attributes of their candidate pool. Here's hoping.