I for one am not too worried about medical students figuring this out. There will be a long lag between the market crashing and medical students changing their residency aspirations, but it will happen. High paying fields will get qualified students, low paying fields won't.
Decent students will go elsewhere. The low quality residencies will gradually cut slots or fail to exist once their is cost equilibrium between running a residency and just hiring the next poorly trained "provider". Sadly I think a new normal will exist with physicians in the ER seeing higher acuity for lower pay. I doubt that significant changes will occur due to the increased liability. Libby Zion? Sure, there are work hour restrictions, but they're not meaningful. Only New York State codified work hour restrictions into law. Those restrictions are largely toothless as residents will falsify their hours. Furthermore, any industry that is actually serious about cognitive impairment due to work hours has much more restrictive work hour requirements (trucking, aviation, nuclear Navy).
Even massive product failures compounded by inadequate training (737 Max!) have only led to product changes and no improvement in training. The 737 max had a poorly designed control system, this lead to numerous near misses that were handled by well-trained crews, but poorly qualified crews (Lion Air and Ethiopian Air) were unable to handle the malfunctioning control system. While it would be possible to mandate both improved training and a resolved control system, it appears that only the control system is being addressed. Future unanticipated difficult aviation scenarios will lead to repeated fatalities in the hands of poorly qualified crews. Heck, Pakistan international airline was blatantly falsifying crew training and they were still allowed to fly international routes until their gross incompetence was demonstrated by a gear up touch and go that wrecked both their engines leading a crash with 97 deaths (2 survivors!).
I think medicine will be worse - our bad outcomes are largely hidden. We will continue to use poorly qualified labor, have to rely more and more on consultants to perform procedures (LP, airway, chest tube or difficult IV? Call the CRNA) and outsource more and more of our diagnoses to radiology.
As for me? I'm going to try to make hay while the sun in shining.