This effectively means (correct me if I'm wrong) that airlines are legally allowed to operate domestic tag-on services in foreign countries - for example Qantas can do a SYD-KIX-CTS (New Chitose) service and sell domestic tickets on KIX-CTS to the Japanese public. Likewise, JAL can do the same with selling domestic tickets on SYD-MEL if they do that tag-on to their NRT-SYD service. As these fifth freedom rights are removed for everything bar Tokyo Airports (mainly HND and NRT) an airline can fly direct to these airports but not sell tickets through to tag-on destinations. Of course Qantas can get past this by using Jetstar Japan for connecting flights.
An example of an airline not having fifth freedom rights is United on their SYD-MEL tag-on. Those seats are reserved for only UA pax wishing to go through to MEL who have flown on the SFO or LAX service - not any domestic passengers.
The removal of these restrictions gives secondary airports more of a spotlight, and allows for larger international aircraft into those airports. Maybe when fifth freedom restrictions are removed for Japanese airlines we may see the likes of JAL back in MEL and BNE!
