I would think that both sides of the splinter, that is, the lifted up part and the solid part from where it came, would slide over each other as the bow is drawn, instead of compacting as we want belly to do. This would mean that that wood is not a part of the "storage of energy" of the bow, meaning that this part of the belly will always be a weak point. If the bow can stand a weak point in that location (overbuilt), you would be fine. If not, well then I would imagine you will get some type of fret or other compression failure.
It is for this reason that I bend my recurves or flip my tips with extra meat on the limbs. This way, the splinter which always arises, is in the extra meat to be carved off.
Not sure if I am 100% on this, but it is certainly how I have guided myself in the past. I would love to know if others agree with me.
Russ