I just checked out your database, and what happens when an application is submitted, is the database checks to see who has access to the applications, and it creates a private thread for those individuals who have the permissions. Once the application is created, however, only those who have access will keep access, even if the application privledges themselves change.
I've noticed on your site that there is an application from a character named "Nebuke" which did go to everyone currently registered with your website.
The reasoning for not retroactively giving access to applications was done with the idea that you don't want someone reading their own application; it effectively allows them to "talk behind the applicant's back" so to speak.
Hope that answers your questions.
---- The day Microsoft makes a product that doesn't suck is the day they make a vacuum cleaner.