Well from what i understand, the chip has to be in proximity to the ignition to start the car. So what they do is cut up your valet key and zip tie the chip part of the key that is in th plastic somewhere near the ignition.
So in effect it is making your car easier to steal since for my 6th gen they would need a chip to start it along with picking the ignition but for yours they would only have to pick the ignition to drive off.