That’s exactly what has happened, and it’s having major impacts on domestic students. The immediate massive hit to schools’ finances has resulted in many fewer contract instructors being hired, and we have significantly fewer course offerings now than in years past. In some cases it simply means fewer elective courses are available, in other cases it’s hindering students’ progress through mandatory parts of their programs. In extreme cases entire programs are being cut entirely or from some campuses.
So yes- sharp drops in enrolment from cash cows, and that hurts the rest of us.
In the grand scheme of things it’s probably still a necessary and reasonable policy choice for Canada writ large. I’m just describing some of the impacts experienced by Canadians as a result.