Doesn't really fix anything other than how your wallpaper looks? If Apple removes the notch and replace it with cutouts and make the actual screen area available for apps your wallpaper won't do anything with apps having actual content being obscured by the cutouts.
The reason why the notch works is because the space is not useable by apps unless you take a full-screen video and allows it to expand into it. Otherwise you always have dedicated status symbols and the notch at the top of your screen, normally with a black background to make the notch not stand out.
Apple can do this in two ways. Keep the same system around, making the top portion be unavailable for apps like today so the cutouts will simply replace the notch, but the area is still dedicated to status symbols. This would render the change meaningless, at that point why not just keep the notch.
Or they can remove this limit making the top area available for apps. But the cutouts look far too big for that to make any sense. It will obscure what ever is showing at the top so I see no real value in it. Sounds like it will only make it all more irritating in use.