If the latter is no, I do hope the US finally ends military aid to Israel. I really doubt it will happen, but if the record says it should be ok, then that would be really great.
The "fuse the militaries / more susceptible to Israeli whims" framing seems to be the hand-wavy part of those articles. If you read the referred Section 224 you'd see details of the expanded scope of cooperation in tech domains and info sharing, and also in transparency and oversight.
Yeah the goal isn't to actually end military aid to Israel, it's to move the military aid under the vague DoD accounting process so nobody outside the DoD knows what's actually being sent.