The new system is brilliant - this is how the devs expect/want you to play the game:
0) A non-iconic character levels to 20 and TR back to level 1 (existing system untouched, but players will eventually get a sense of "wastage" because doing iconic will grant both iconic AND heroic past life so maybe they want to consider doing iconic instead).
1) A non-iconic character levels to 28 and performs Epic Reincarnation, getting an Epic Past Life and goes back to level 20.
2) After Epic Reincarnation, the journey back to 28 is going to be dreadful - quest completions are not reset so no first time bonus means you get less xp, and hitting ransack faster means getting comms slower, favor not reset so no TP earned, etc. So what do you do? Smart thing will be to do a TR immediately. If TR into non-iconic, back to #0 or #1 above.
3) If you choose to TR into iconic, you then go from lvl 15 to 28. At this point, no, as an iconic you do not want to ETR (because after ETR you go back to level 20 and the journey back to cap is going to be dreadful see #2 above). So you do Iconic TR and you will get both iconic past life and heroic past life.
4) When you do Iconic TR, you decide whether next life you want to ETR or TR again. If ETR you choose a non-iconic life (going from level 1 to 28, back to #1 above). Otherwise you choose iconic again (#3). Seriously, if you are iconic and you ETR, you are trapped - you go back to level 20 with a dreadful journey back to level 28, so it is probably not wise to ETR as iconic.
So, there you go, a brilliant system that covers all grounds, no short-circuiting anymore - players play from level 1 to 28 depending on their goals. If you want to stay epic and ETR repeatedly, the grind is going to be horrible (see #2 above), so you will be better off rotating all 3 kinds of reincarnation.
Yeah, glin is that good.