Kind of defeats the whole purpose of retweets.
EDIT: Someone at randompictures clued me in that I was wrong: "no it doesn't. i think you are misunderstanding it. you only see retweets from people you follow. in other words, if someone YOU are already following re-tweets something from someone THEY are following (even if you aren't), you will still see it.
basically, it will work just like it does right now, just easier for those who use the website."
I are doofus. %-P