Clearly, if this happens at all, then it is a bug.
Perhaps they see this as a problem?
Any change is going to provoke rage quit threats, always has, always will.
If you are not equipped for a quest on elite, you should not be running that quest on elite.
Though true I would hazard that for the great majority of folks in this category they do not even get to see a champion. Heck, they cannot even open hard/elite!
Only time will tell as to whether these changes open up the spread of LFMs, but as you identify, they are thinking about it. As to whether the game is unbalanced I suppose that depends on what you think balance is...