The proposal is about shrinking the reserved loopback range from 127.0.0.0/8 to 127.0.0.0/16. Everything from 127.1 to 127.255 would then become ordinary IPv4 addresses.

This is just a proposal. It will likely never happen. The proposal to open 240/4 (former class-E / reserved IPv4 space) is more feasible.

Can't see this being useful. There are so many devices and so much software with 127.0.0.0/8 baked in that I suspect an address in the proposed range would be less routable (overall) than an IPv6-only endpoint, and remain so for years, even if it became official.

> Are you saying that they’re going to allocate the loopback range as v4 addresses?

Yes, there's a proposal to do so, which was discussed here last week (https://news.ycombinator.com/item?id=29246420 and https://news.ycombinator.com/item?id=29245466).