It'll be curious to see whether or not they surround him with updated versions of Ursa and Non, as well. I suppose the story of Zod and the Phantom Zone is pretty easily mixed back into the Superman origin story, should they be interested in retelling it, so I can't say that this doesn't make sense. Now we just have to see what role Luthor will play in the film, and who they cast as him. Any ideas? I think an evil Morgan Freeman might be fun, but Luthor has always been represented as somewhat playfully evil in the film. Maybe a silly Keanu Reeves? A smirky Bruce Willis? I suppose we'll find out soon, as the casting appears to be proceeding apace. Just don't forget who you're supposed to kneel before.
Zod is not only one of Superman's most formidable enemies, but one of the most significant because he has insights into Superman that others don't. Michael is a powerful actor who can project both the intelligence and the malice of the character, making him perfect for the role.