The future of CHF has been in doubt for a while, but I'd be cynical until an official decision is announced. Even if the CHF is scrapped I don't think it will be the end of the FAA as - even without CHF and Harriers - there is still a big chunk of important rotary assets with relatively specialist skills and roles. I am not sure the concept of a 'critical mass' is relevant when pretty much all training is joint anyway. There would be no real efficiencies to be made in scrapping the FAA in toto, and it would just piss of both dark and light blue types alike (said as a light blue).
Makes a good story though and it'll wind a few up...