Exactly. The test is a good thing. Any teacher who is scared of it is not teaching phonics well, and what they are scared of is that showing up.
Now they are not teaching phonics well for a variety of reasons, often because they don't believe in phonics or their HT / Literacy co-ordinator doesn't believe in phonics. (Or because they've been teaching 20 years and 'best practice' has changed over that time.)
So the test will do 2 things. Encourage schools to teach phonics properly, and identify students early who are having difficulty learning phonics.
Every week we have yet another thread started by someone wanting to know if their child is dyslexic. This test should reduce that significantly.
There will be less worried parents because their children will be taught better in R and Y1, so there will be less children unable to read simple sentences by the end of Y1.
And there will be less worried parents, because the children who aren't learning at the correct pace will be acknowledged and identified at the end of Y1, instead of telling the parent to wait and see till they're 7.
(Although you'll still get loads of well meaning posters here spouting that...)