Banned or controlled isn’t a huge difference. Either way it means rare earth magnets will be in short supply if this situation continues.
The point is that China knew they had this pressure point and they are now using it. As long as this lasts, hobby magnet uses will likely be impacted as elements get funneled into critical uses.
Another user that is getting iced out is elon musk and his robots. He needs specialized motors that apparently he can’t get now.