"people don;t want choice, they want quality care at their local hospital, surely?"
I disagree with that, I think people want to be able to assess and select the best options for them.
To give you an example, I'm on the waiting list for two hip replacements, one after the other. This follows undiagnosed developmental dysplasia when I was a baby (picked up age 2) and repeated previous surgery which has had varied success, it's not a standard replacement. I had been living out of the country and was now in a different city from the one I had previously been treated in, so needed to find a new consultant, one that had experience dealing with hip replacements in young people and also with complicted cases.
My GP was very helpful, but said he didn't know which consultant I should see, so would do me a general referal. I did some investigation online and through my previous doctor's recommendations, found the consultant I felt was the best in the field and asked for a specific referal to him which my GP gave. When I was asked by the NHS Choices which hospital I wanted, I picked the one this consultant worked at and the person I poke to tried extremely hard to change my mind as the waiting lists for that hospital were long, and tried to persuade me to try several other smaller, more local hospitals (which I had investigated and dismissed). From their perspective this had nothing to do with services available and, from what I could see, only had to do with keeping the waiting list time down. I had to push really hard to get into my chosen hospital and then had to continue to push until I got to see the doctor that I wanted to.
The procedure that the government seems to want to change to is one that would facilitate this, the GP would have had more information to tell me about the available consultants without me having to do the research myself and his direct referal would have been acknowledged without me having to spend hours on the phone persuading people that I wanted to see this particular doctor as he specialised in my specific problem.
If I was 70 with no complications and wanted an absolutey normal hip replacement then yes, absolutely, quality care in a local hospital would be my priority, but I think in more complex circumstances then the choice is vitally important to make sure that you get the care you need. The current hospital referal system doesn't account for that complexity, while added choice in the system would mean that you and your GP can adjust based on your circumstances.
How these GP consortiums actually end up working is a different kettle of fish, and there isn't enough detail out yet to really condemn or commend them, but from a process point of view, based on my own experiences, I think it could be great for the GPs to be considerably more involved.