This graphic on Wikipedia is probably really helpful to visualize some of this: https://en.wikipedia.org/wiki/Kessler_syndrome#/media/File:D...

While there's a lot of space junk up there, you can see that the graveyard orbit is in fact a fairly tight line around the equator. It should be quite easy to avoid.

From the look of it, it's kinda functionally equivalent to putting a fence around an airport. I mean, sure, it theoretically limits your options, but not in any practical way.