rjcombo posted a response on reddit, confirming the feature and saying:
"Well this was unexpected! I'm curious how you came about that screenshot.
Yes, I can confirm this feature is happening, along with a few details:
A queue dodge penalty will be applied to players who fail to select a champion. The penalty functions the same way as a standard queue dodge from closing the client.
Solo players who did select a champion are returned to the front of the matchmaking queue.
Arranged teams are handled the same way as with a failed ready check. If all members selected a champion, the team is re-queued. If any member failed to select a champion, the team is sent back to the arranged team lobby.
Draft mode is handled on a pick-by-pick basis. The game terminates when a player's pick timer has expired without a champion selected. Players with later picks are given the benefit of the doubt.
The feature is still a work in progress so I can't commit to a launch date on PBE or Live."
RiotDamiya also chimed in
"Please note this isn't feature isn't active just yet. I promise you that those of us that worked on it are just as eager to see it out the door as you folks are! :)"