Considering how Sugar Belle lost her talent for baking, I'd say that everypony did lose their talents but still kept basic abilities like levitation and flying. You know how Rarity couldn't tell if the curtains in the room she was trapped in were tacky? She may have previously built up fashion skills but the Equalizing magic made her lose her skills and made her unable to recall them.
I still wonder how Twilight didn't have a moment where her Equal Mark pulsed. She still had the same knowledge she always had about the things she studied, she just couldn't apply them to any spells. I suppose Starlight's spell was more focused on the actual erasure of talent but not so much knowledge. Sugar Belle, for example, had the knowledge to bake treats but her magic was altered to the point where she physically could not use it to make anything actually delectable. Same with the cloak pony. He probably knew how to make clothes but his lack of a talent made it impossible for him to make anything actually fashionable.
I believe Starlight's goal was to neutralize everypony so that everypony could perform any task they wanted without fear of failure since they could all perform at the same (albeit terrible) level.