All this is, really, is mandatory deposit in an institutional repository (which faculty at various universities have been doing for years, anyway!). A step forward? Definitely. A retooling of academic publishing? Sadly, not even close.
What review process? The journals will still do their normal review, I assume. The things put in the MIT repository aren't being "published" there, they'd still be published in the journals they were published in, they'll just be freely available in this database.
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