It doesn't do anything for the game except being annoying. Either get rid of it and make it convenient to run around or make a more dangerous open world that actually requires attention.
Let me add this note. The only reason I suggest getting rid of it is because Yoshi already decided to make the open world casual. So why not take another step and just get rid of this annoying and pointless debuff.
If Yoshi actually wants to change his mind about the open world then sure, keep it and make mobs more dangerous. But he's not going to.