It wont affect the FTOs.
They will either drop entry standards/ requirements or get rid of them altogether so they get the same number of people through the door.
It just means that becoming an airline pilot via the large FTOs will be for the elite rich only!
...of course, not compromising safety / training standards and output quality in the process...
Sounds like sour grapes to me.
Perhaps you are right about FTO's being forced into loosening entry requirements, but I have faith that the ATPL's and skill tests would ensure the quality of the graduates.