This doesn't seem to have anything to do with LQT.

Test case:
[[w:foo#bar|]]

Expected result:
[[w:foo#bar|foo]] (or maybe even [[w:foo#bar|foo#bar]])

Actual result:
[[w:foo#bar|]] Which is not considered a valid link and rendered as plain text.

Which brings up the question of do we want to expand the pipetrick even more? making [[foo#bar|]] -> [[foo#bar|foo]] would perhaps also make sense, but at some point we get to be going down a slippery slope.

It would be very useful. My reasoning is that the predominance of links would not visibly show the target, and the anchor is hidden at the end. So for me it makes no sense for the target to be shown when utilising the pipe trick.