I've spent a bit of time thinking about player generation, competitive balance, and the ongoing re-seeding of a world.
This is not necessarily a bad thing, and might be necessary for a world to periodically renew itself.
Contrast it to the many complaints we often see about "terrible IFA / draft class"... "haven't had a good one in years"...
We also complain that scouting doesn't let us "see everything." Well, if you could see everything, you'd know this had been going to happen. THAT would have been a competitive disadvantage.
And BTW it doesn't mean, to my mind that all these players will be super studs. One or two of them will be. If as you say the world is suddenly being flooded with fresh talent, much of it will cancel each other out, especially if more or less equally distributed within the teams.
What it WILL do, IMO, is relegate much less talented players who have till now been performing relatively well, to bench fodder.
I'm only saying this from having played in one world for over 40 seasons. Great players come and go. What I've realized is that, for instance, when there's a lot of "great" pitching around, what we in this forum think of as an average hitter (in a vacuum) is just an average hitter.
Ten seasons later, a generation of pitchers is gone, maybe the talent level of the world decreases, now that average hitter (based on ratings alone) performs at all star level. Changes how you are able to build a team.
If this occurred naturally, that world probably won't see another IFA class like this for at least 20 seasons. Maybe not even a good one.