It makes sense, I don't think anyone could realistically expect anything different. Considering it's basically a starting negotiating position, it's actually pretty good from my perspective (EU national who has formally been granted permanent residency by exercising his treaty rights). Obviously the devil is in the details, i.e. what it will mean exactly "after the cutoff date": if one has lived in UK long enough to…
Apparently my Dutch friend who has a PhD funded by the UK government can't apply for permanent residency because she doesn't earn enough to meet the £35k minimum earning set by the UK government. She's been here for almost 8 years. She's lucky that she's getting married and her now-fiance earns enough to make her qualify for spousal visa, but I know tons of others who are not so lucky.