Pay Ferro is a great fretboard material. I have it on a bass, it looks and sounds great, quite similar to my rosewood basses in fact. I believe it is a suitable replacement, what doesn't make sense is using ebony as a stand in on the American basses. Ebony is much harder that rosewood and has a very different sound. Not sure the reasoning behind that.
On top of that, the world's supply of ebony is drastically smaller than the world's supply of rosewood. In fact, most of the Indian Rosewood coming out of India is grown on plantations, so it's a completely renewable source of wood. With Fender switching to ebony it simply means ebony will be added to the CITIES list that much sooner.

