There was quite a backlash at the time. People saw it unfair to actors who had trained and worked for years for people who won a competition to get a part on one of the nation's leading soaps. There was also a lot of talk about how terrible their acting on the show was in the press.I remember that one of the redtop papers ran a story saying that the regular Emmerdale cast complained like crazy about jobs going to Amateurs and non-union 'actors'. I think the guy who played Zac Dingle was mentioned as refusing to speak to any of them off set. I guess that's why the concept was quietly dropped and never repeated.
I saw one of those When TV Goes Horribly Wrong-esque documentaries that talked about it and the talking heads pretty much said the same thing although they much more sympathetic to them in hindsight. It also made clear that the people who won the show were all trained actors, they even spoke to one of them who still works as actor (albeit on stage) who felt they way they were treated was unfair and most budding actors if offered the opportunity to win a role on a TV show would take it.