Not a bad feature to have if gms want to start new sessions for different parts of their campaign, but I'm not sure why the gm wouldn't just use the same session/game. A simple work around would be to have the gm level the players up and give them the same items as they had the session before. Again, not really sure why the gm wouldn't just use the same game session for this and avoid the hassle, but all to their own I guess.
Never seen players bring characters from another gm's game in real life pnp, but I'll take some folks word that it happens.
Cool feature, but hardly gamebreaking or without an obvious workaround.