The most-crippling part of this is removing their ability to use wire services (AP, Reuters, et c).
It means they can only cover news if they send a correspondent. They cannot cover much at all that way. It basically means it’s just a company newsletter now. They don’t even have any correspondents covering the war.
That's the real loss.
The original idea behind Stars and Stripes was that it was a general newspaper for US troops. Reading it gave general world awareness. DoD's own output is very narrow. Here are DoD's current press releases.[1] They're written in a very evasive style now. Here's the one on de-emphasizing the Havana Syndrome research office, titled "War Department Announces Realignment of Anomalous Health Incidents Cross-Functional Team to the Office of Research and Engineering "[2] Unless you know the background, that's totally meaningless. Much DoD PR today seems to be at that level - too defensive and obfuscated. Either that, or it's just administrative announcements. There's almost nothing about the current wars.
DoD used to have something called "The Early Bird", discontinued in 2013. This was a reprint of press clippings for Pentagon-area staff.[4] It was supposedly restricted to DoD personnel to avoid copyright issues. It was politically neutral, but prioritized DoD issues, such as command changes and procurement, that would be very minor stories in the public media.
Worth noting is that this war does not seem to have war correspondents embedded with US troops. There's not much info coming in from ground level on the US side. Al Jazeera has coverage from the Arab world. CNN has some people in Tehran who were based there before the war and are still sending.
[1] https://www.war.gov/News/Releases/
[2] https://www.war.gov/News/Releases/Release/Article/4411182/wa...
[3] https://www.marines.mil/News/Messages/Messages-Display/Artic...
[4] https://en.wikipedia.org/wiki/The_Early_Bird_(newsletter)
[5] https://www.aljazeera.com/