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Since the process is instantaneous you can colonize a planet with very low habitability (but high enough to permit colonization; I'm not sure how low you can colonize these days) and then if you have timed the colonization correctly you will immediately be able to seed it, removing the habitability penalty. In many ways this is much better than traditionally terraforming an inhabited planet, and except for the high volume of traditional terraforming you can potentially perform it has advantages over terraforming the planet before you colonize it.