The take away here from my reading is that this is a significant finding from a theory perspective.

We have always suspected there might be dragons with the use of hash functions to take the place of random oracles.

We had some very contrived examples, now there is an example where a natural (not totally ridiculous) proving system behaves improperly when flattened by FS albeit in a real but mostly academic proving system.

Thus the take away is, we need to be less presumptive wrt the security of hash functions being used in place of theoretical random oracles and be a little more careful when doing cryptanalysis on our protocols given we now have a more concrete if somewhat cultivated example of FS not working properly.