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Judging by recent comment from Princess Fiona, it may be a case that they are attempting to reduce the long queues for Glass in the mornings!
This is exactly what I think they are trying to do. If so they will need to substantially up the ante with the breakfast offerings in the Exec Lounge as they are very poor. Not really comparing apples with apples but as an example : Conrad HKG has breakfast for Diamonds in the Garden Cafe or the lounge. The food in the lounge is a mini/lite version of that which is available in the Garden Cafe. It's actually really decent and very convenient to go there if you just want a quick fuel stop before going out for the day. The continental buffet at Exec Lounge Hilton Sydney bears no resemblance whatsoever to what is available in Glass. Boiled eggs, poor cold cuts and sad fruit salad just don't cut it really.
It would also be crazy to restrict Diamonds to the Exec Lounge but have Golds not upgraded to Exec level have breakfast in Glass.
FWIW there are a few hotels in the Hilton chain worldwide which restrict restaurant breakfast to Diamonds only and have all Golds take it in the Exec Lounge. Personally I'd rather Hilton SYD didn't implement any changes to breakfast but if they do this option would make much more sense. Why penalise your highest value customers? Crazy stuff