I'm glad the NYT is shedding light on this topic but, perhaps the most important aspect of standards based grading is almost burried in this article.

One of the basic premises of SBG is that students know exactly what knowledge and skills they have to master. They are assessed and then encouraged to address weaknesses so that they can be re-assessed. This is opposed to a "gotcha!" based assessment system.

This approach can have a profound impact on students because it encourages them to assess their own learning and take the initiative to grow and improve.