It unfortunately limits junior pilots options. People I have known used the Australian ATPL that they obtained with only C172 time to launch a jet or turboprop career overseas back in 2008-09.
In today's market in Australia we have junior pilots spending 12 months up North & out west not finding work. That is because the market is stagnant, nobody is moving up the ranks.
So for those pilots with 1500-3000hrs that didn't get the required night hours in time, they will be most likely relegated to a career flying piston aircraft or caravans for little reward in remote places.
At least if the Australian ATPL was an option for them then they could move overseas and continue with the career progression.