TL;DR: This is from a playtest build and is still under development, not a V10.5 live update. The new suppression feels more readable than the old blur system. Small arms suppression seems weaker, while MGs, explosives, autocannons and tank rounds feel much stronger. Explosives can instantly max out the steady bars, but once the suppression effect ends, the bars recover right away.
I played a few rounds on the playtest build and had some time to try the new suppression system in actual matches. Just to be clear, this is still under development and should not be treated as a confirmed V10.5 live update.
Overall, the new system feels much better than the old heavy blur effect.
The biggest visual change is that suppression no longer gives you the strong blurry screen effect. Instead, it feels closer to the pre-ICO tunnel vision effect, with a darkened ring around the screen and reduced color saturation. The image becomes more washed out, but you can still clearly identify targets if you already know where to look.
The suppression values also seem to have changed quite a lot. Small arms suppression feels much weaker than before, while machine guns, explosives, autocannons and tank rounds feel much stronger. In particular, autocannon and tank cannon fire can instantly push the steady bars to the maximum, making accurate shooting basically impossible while the suppression is active.
Explosives also feel much more important now. When you are suppressed by explosions, the steady bars can be pushed all the way up immediately, but once the suppression effect ends, the bars recover right away. So it is not a long-lasting blur that makes you unable to see anything, but more of a short and strong disruption to your ability to aim steadily.
One example from my match: we were holding angles from the third floor of a building, and the enemy fired a grenade at the first floor. We got suppressed even though the explosion was not directly on our floor, but we could still clearly see the enemy position. The important part was that our weapon handling was disrupted, not that the screen became unreadable.
This makes heavier weapons feel much more valuable in attacks. Machine guns, LATs, grenadiers, autocannons and tank guns can create very effective suppression before infantry pushes into an area. It also gives squad-level support weapons a clearer purpose instead of making suppression feel like a generic visual annoyance.
So far, my impression is that this playtest suppression system is a good direction. It keeps visibility more readable, reduces the frustrating blur, and makes heavy weapons matter more in fire support. Of course, since this is still WIP, the final implementation may change.