I think the main problem here is not only the policy but the time of implementation. Sure if they said a few weeks/months so schools, ATPL theory organizations such as Secombe etc could re organize and prepare classes given the new circumstances but this has not eventuated and now they will get a flurry of guys attempting exams in the next week-two who a.) are not ready and b.) will clearly not learn the topic but just a pass as you say.
Doing this for IREX especially could prove fatal but anyways thats not for me to judge.