While welcome news to those worried about the Bannon’s proximity to the military wing of the Fourth Turning, he will now focus on the domestic aspect of his racialist agenda. Putschy-grabbing continues.
The plans have probably already been made for whatever military / national security distraction will come in June, so returning the DNI and the Chair of the Joint Chiefs to the statutory roster is largely cosmetic, and not much of a shake-up since they would not be kept out of any decision-making loop.
Bannon seems to have been a Flynn “minder” anyway, like Trump operatives have been assigned to all administrative agencies to report back to the head commissar in the WH.
Like Manafort and Stone, Bannon will continue to guide Agent Orange and as a non-statutory member of the NSC, he was and probably continues to be, privy to most intelligence anyway since all senior advisors to POTUS45* have 3-star general rank-equivalence (just like Ivanka and Jared).
Remember that the kerfuffle among the underlings is a feature, not a bug of Lord Dampnut’s corporate management style. The “unpredictability” of that style while useful for autocracy often seems a bit like stochastic state-sponsored terrorism in the age of Twitter.
For those grasping for Godwin examples, there was, IIRC quite a cutlery related event between a number of security services resulting in some corporate sartorial rebranding from brown to black. And then there’s that bullet-proof preppy-wear. Next step, shorts and blazers.