100% yes. Step 2 will be the de facto step 1. The most competitive specialties will be even more competitive because people won't self-select out secondary to a sub-par step anymore. They'll keep going and going until step 2 (a lot of people take it towards the end of 3rd year, close to ERAS), and just keep going because they're 3 years deep building an app for that specialty. Some say that the shelves correlate with step 2, so maybe people will self-select earlier. I doubt it though, lol
Interestingly, with this lack of self-selection going on, in the fields that require aways, we may see a glut of applicants, even more than there are now. Apparently most aways are first come first serve, with some having step cutoffs. Without those cutoffs because of p/f, coupled with an insane amount of people applying, people will be selling their firstborns to secure aways, lol. With that, people that weren't quick enough will be effectively barred from a specialty even if they end up having the app for it when their step 2 score comes out.