What is after the hukou?

Danwei points at an interesting article claiming that Yunnan province will abolish the hukou system, China's house hold registration system that was instrumental since the 1950s to keep the Chinese citizens literally in their place. While much of the limitations of the hukou have at least lost their sharp edges over the years, it is still there.
The question is what will replace the system, since you cannot just abolish the existing registration system without having a new one in place. In Shanghai Chinese need it to get passports and other legal document, to get married, to go to schools.
The changes in Yunnan seem to be less revolutionary than Danwei suggests. From the original article in GoKunming:

Beginning on New Year's Day 2008, the system of 'rural' and 'non-rural' hukou classification will be abolished throughout the province. Furthermore, applicants will be granted residential permits in their city of choice if they can provide proof of legal residence (such as an apartment lease) and if they can demonstrate that they have stable income.

Although, lifting the divide between rural and urban citizens is far-reaching enough.