This is not a good development for MLB.
Yes, younger players should be compensated better, but an arbitration judge having to choose A or B is not the way to do it. $13 MM is a big gap, the judge should have been allowed to big a number somewhere in the middle, but current rules do not allow this.
Smaller market teams with payroll restrictions/commitments may now start DFAing players like Skubal because they will not be able commit so much payroll % to one player, see Skenes, Paul in Pittsburgh. It seemingly punishes teams for drafting and developing players, the whole point of this game.
I'm not saying that Skubal is not worth the awarded $$$, but imagine a smaller market team developing players such as Skubal, Skenes and Soto suddenly having to commit $100 MM to 3 players as compared to, say $75 MM, competitive balance goes out the window. Or these type of players get traded to NY or LA or another big market and those of us with hopes of the local 9 making the WS are all but gone.
For better or worse, MLB needs to figure out a better way to keep all teams competitive and at roughly the same payroll, or the whole system implodes and only the big teams on the coasts compete.