The use of set thresholds when making breeding decisions is an important component of utilising EBVs within a breeding program, however if the thresholds are too tight they can impact the potential gains of the program.
More often than not, if the threshold is too tight it can restrict genetic gain through limiting potential animals that will overall deliver greater genetic gain for traits within the breeding objective.
Restricting genetic gain might sound counter intuitive because what you are doing is putting clear objectives in place on the key traits we want to improve, which is important in making genetic progress.