Not sure about the rest of the population but I only have IO with offset on my mortgages.
To give you an example my PPOR offset balance is nearing the loan amount which means I pay minimal interest but the loan remains on paper. I choose not to pay down this debt as I want control of my money.
Once my offset balance meets the loan amount I then have the choice to either pay the loan off, make P&I repayments over the remainder of the loan, or simply reinvest some of it.
Just because there's a heap of IO terms expiring doesn't mean the holders will struggle to make repayments.
