The proclamation was one measure in a general reordering of Japanese religion after 1868, and it reads differently beside the others.
Four years earlier the new government had ordered shinbutsu bunri, the separation of kami worship from Buddhism, which had been fused in practice for a thousand years. Buddhist images were removed from shrines, Buddhist clergy attached to shrines were laicised or expelled, and in some domains the order was taken as licence for haibutsu kishaku, the destruction of Buddhist property. Thousands of temples were closed or amalgamated, images were melted for their metal, and monastic landholdings were confiscated.
Against that background the 1872 decree looks less like a liberalisation than a further step in reclassifying Buddhism as a private matter with no public standing. Contemporaries in the orders read it that way, and Richard Jaffe has argued that the government's intent included making the clergy taxable, conscriptable subjects like anyone else.
The long consequence was a Buddhism organised around households. A priest with a wife and children needs an income and a successor, and the temple provides both, so temples pass from father to son, funerary services become the economic base, and the training period shortens. Whether that is a decline from monasticism or an adaptation that kept Japanese Buddhism alive through modernisation is argued in Japan and outside it, and the atlas records the instrument and the outcome rather than the verdict.