We are stretched, but clearly not overstretched - otherwise we wouldn't have AT assets doing flypasts for AOCs, Queen's Birthdays, RIAT etc, not to mention the occasional brass band to ambassador's parties.
We can still do most things with occasional flex to do less-important tasks but sometimes its a case of choose between op tasks when several ageing aircraft break at once. New kit would vastly improve reliability and efficiency, but I personally hope that wouldn't also bring with it more 'brass band-level' tasks. Unfortunately, I can't help but think it might.