The army wants to move from a structure based on battalions of about 600 men to an emphasis on company-sized sub-units of about 120 men that can be more easily deployed.
But isn't that just how the Army is structured anyway? Coy's can be deployed independantly anyway.
As for the Regimental system being outdated ? A Regt is just the next level up before BDE, DIV etc, what you call it is neither here or there. Why not leave well alone. The Black Watch seemed to do OK in Basra.