Hm, based on the screenshot, I would call that more in the way. At least with the old banners, on app with a traditional iOS look (with the big fat bar on top), the buttons on the top bar would only be half obscured (particularly the "back" button, on the top left). I could still press them, albeit I had to be more careful to do so.

Looks like here that the banner covers up that back button pretty good, rendering the button completely useless (instead of half-useless) until the notification goes away.

Still, I haven't actually tried it out. I'd imagine there's settings to change the location of the new smaller banner. I think I'd choose right in the center of the screen (nothing's usually there anyway). I still get the smaller notification I need, and still have complete access to the top bar.