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it would be bad for everyone who does not have home programs and connections or pedigree. Including mid to lower tier MD schools.The worst thing that could happen for DO students is for Step 1 to become P/F. It's literally our only chance to match competitively without padding your resume with complete BS. I am all for anything that is a standardized test especially if it means that I don't have to volunteer/shadow/research (depending on the field)/pre-med style crap.
The single best thing about med school is that I just do well academically, be congenial, and have good hobbies outside of studying. That's all it's gonna take for most situations. You stop stratifying students via the MCAT and Step 1 and suddenly school reputation matters even more than it already does (Ivy students getting 225 and making plastics etc). This would be very bad.