I have an issue with more schools being accredited period, foreign or domestic. (I know the AVMA says they can't not accredit schools that meet criteria, but in my opinion something needs to happen because it's making a bad situation worse. Obviously that's another conversation entirely.)
@Escalla maybe it does work out just fine without a teaching hospital; I really have no experience other than my own and I don't feel strongly on the matter. The only major drawback I see is that schools without a teaching hospital must distribute their fourth years to other schools with teaching hospitals. I'm of the opinion that that model, if more and more schools without VTHs are accredited, has the potential to put a strain on the schools that accept students for fourth year clinics. It's effectively increasing those class sizes and it's possible that the number of clinicians and staff and the caseload of the particular school won't be able to support such class sizes. If there are enough students per rotation, it's possible that student skills begin to suffer as the cases and practical techniques have to be distributed amongst more students.
It isn't something that's going to happen overnight, but I think it's a real possibility.