I knew they were working on stuff like this. They have no choice, they have got to make some kind of effort to be relevant when World War III breaks out.
The phalanx was obsolete. With this upgrade it gives a ship a prayer of surviving amidst a sky filled with nuclear cruise missiles. This plus a decent traversal rate could actually stop missiles from getting in close enough to land direct hits without being intercepted. In the absence of improved defenses like this, the navy is just a bunch of scrap metal on the bottom of the ocean ten minutes after the next war begins.
Of course, the Chinese will recognize this strategy and simply detonate their cruise missiles earlier or just as they approach range. It is a better defense for navy ships but hardly a formidable one. The cruise missiles we are talking about are traveling at twenty times the speed of sound or better. If you sneezed you'd be dead before you could ask the radar man what that glitch is on his screen.