boz,
In the absence of all empirical data for the "new" system and the lack of a People Department rep who posts here, I'm afraid we're all speculating. That said, I'll offer my personal speculations:
I don't think SWA sees the 10,000 hour pilot as necessarily "better" than the 3000 hour military guy. More experienced, yes. Not necessarily a "better" fit, though. The guy with a zillion hours at "brand X" may be more entrenched, less trainable, and less adaptable to the SWA mentality than the younger guy coming out of the military. "Hire for attitude, train for skills, and you have 5+ years in the right seat to gain experiencec." (Yeah, sweeping generality there, and plenty of exceptions.) I think the guys with years at Brank X are going to have a hard time with the question, implied if not stated, "so, if you luv Southwest so much, how come you didn't apply here back when you were starting in the airline business? Do you really want to be HERE, or are you only applying here because you need the job?"
While there will be plenty of guys with good answers to that question, I think that the P.D. will also keep a steady flow of 10-year military guys in to the interviews, if for no other reason than the fact that such pilots bring a good balance to the newhire classes and to the pilot force. Them, along with some number of military retirees, and corporate guys, and 135/121 commuters, and some number of ex-121 majors. Strength in diversity, so to speak.
While there may have been times where some carriers decided that they only wanted XYZ type of pilot & everybody else was pretty well chopped liver, I don't think that the P.D. has gone that route at Southwest, and I don't think that that's in the offing.
So, bottom line, the mainstream 10-year military guy with normal career progression & experience will continue to be competitive at SWA, just like he always has been.
Just my personal opinion, but I'll stand by it.
hope that helps,
Snoopy