This is a linkpost for https://openai.com/index/evolving-our-structure/
They aren't dropping the plan for the nonprofit to have a bunch of other distracting activities, they're keeping the narrative about "the best funded nonprofit", they have committees recommending charitable stuff to do, and etc. So I think they're still trying to neuter the nonprofit, and it remains to be seen what meaningful oversight the nonprofit provides in this new setup.
The OpenAI Board has an updated plan for evolving OpenAI’s structure.