Just a few random thoughts:
1) This may also have an impact for Comux's RFP for a new network.
2) Although it cuts costs, nothing much will change. That's Manchester often has reports from Preston (not so much from Carlisle). It may give the reporters more time to be on the street as he says - though my thought is that, no matter where they contribute from, it still needs to be edited and prepared. If only the studio links are done in the regional hub, then it won't save the reporters in the other parts of the region much time. It will save Mr. Cass lots of money on rent.
3) If the 'entertainment-led' spine is done well, this will (somewhat) improve the quality of the channels. If it's just a simul-cast of some cheap TV channel like Your TV then it'll be pointless. The only hope I have for the 'spine' is that Notts TV is involved. I believe that David Lloyd - of radio fame - is on the board of Notts and I'm sure he won't want anything to degrade the quality of the channel. It's not great, but it's a huge amount better than most of them.
4) Although That's is a pretty poor service, the reports they are creating are still a slice of life in the local areas. Aside from Youtube I wonder if anyone, anywhere is creating an archive of these reports. I mean, nothing like the TVS archive of course, but at least something to look back on. There must be terabytes of video across all the areas by now.