US and Canada arn't the only ones affected by this. Sweden, Czech Republic, Finland, etc also have their top guns playing in the NHL, thus ineligible. Russia will have a clear advantage given the number of good players they have in the KHL.
While it's always nice to see the world's best vs best, the tourney will be very, very interesting to say the least. And it will still be good hockey. The Olympics stage will make most of the players play over their heads. It will be just as exciting as a WJC tournament. I know a lot of people are complaining and saying they won't watch, but I bet it ends up being quite a fun tournament. Everyone will be out to get the Russians.
BTW I doubt we see more than 2-3 juniors per team. The top ones like Hischier, Patrick, Heiskanen, Dahlin, Dubois, Svechnikov may have a shot, plus a couple of older NCAA star players, but aside from that, veterans from Europe are still miles better than any good CHLer.