Post collision, all debris orbits will still be passing through the point of collision. Any deflection with a vertical component (up or down towards the earth) will have a part of their orbit go through thicker atmosphere, which will make them deorbit faster. That leaves deflections which are in the plane spanned by the two orbits ("sideways" and "forwards/backwards"). If those deflections in any way slow down the piece of debris, that will also go through lower atmosphere and deorbit.
Disregarding debris under those effects, the remaining debris will have two more things going for it: They'll be out of the LEO orbit for a large part of their (now elliptic) orbits, and they'll be smaller so they'll slow down more from friction (due to the square-cube law).
Of course, cascading effects could still affect all satellites in LEO (and humanity's access to orbit for years), but it doesn't seem to me like it'd be a "permanent" issue in LEO? What am I not seeing?