In terms of YOUR application? No. Literally nothing changes for you.
With regards to those capitalizing on grade replacement? Yes. The extent to which is dependent entirely on how many retakes a person has.
That being said: schools can use whatever retake policy they'd like to when they look at your application.
Takeaway: The level of competition is exactly the same for you, and your application doesn't change at all with respect to the new policy. The only applicants that will be seriously effected are those that have retaken half of their undergrad coursework and should probably do an SMP now instead.
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