Just look at the other immortal sects and Daoist sects!
those immortals who were not heavenly status were counting on the immortal sects to help them transfer them to heavenly status. if their heavenly status had improved so much, there would not be so many people leaving the eight desolate universe. if the immortal sects were to put in all their effort, not only would they not be in a good situation, they would also be tortured to death by these immortals.
Therefore, many immortal sects and Daoist sects saw the embarrassing situation in the future and learned from the Luofu sect. They cut their losses when they needed to. Such a reorganization was indeed much more comfortable. There was no need for favors at all. They didn't even need to move around. It also simplified the bloated sects a lot, which was really satisfactory.