It still allows the virus to replicate and mutate, potentially into a variant that is different enough that the vaccine no longer prevents people from dying.
This is why creating a vaccine for coronaviruses is a fool's errand. This is all very predictable. We have to look at the actual harm being done, and decide if all this is worth it.
If the vaccines do reduce hospitalizations and ultimately deaths, then we can live with it and can forget about vaccine passes and restrictions.
Getting your optional and yearly coronavirus booster is a likely and realistic outcome of all this.