Google will most likely take the wraps off Android O at I/O this year, possibly with a developer preview for us to test. What's going to happen in Android O? No one is sure yet, but 9to5Google has posted a few rumors. These are all unconfirmed, but we may see changes to notifications, icon tweaks, picture-in-picture, and more. Or it might have none of these things. That's the thing about rumors.
There's not a ton of information about what 'revamped" notifications could be in Android O. 9to5 was just told they'd be different somehow. There is some speculation this might have something to do with past rumors about synced notifications and smarter ordering, which was part of the Andromeda leaks last year.
Icons in Android O will reportedly get support at the OS level for dynamic features. For example, a date on the calendar icon that changes like we have with the Pixel Launcher. Icons may also have iOS-style notification badges. That's something you can get with third-party launchers already, but it'd be part of the OS if this rumor is accurate.
Picture-in-picture mode is also cited as a feature of Android O in the new report. Picture-in-picture mode is currently only implemented on Android TV. Android O might allow you to have floating video on all devices without any separate tools. Something similar exists in Android as "freeform window mode," but it was not an official feature in Nougat.
9to5 also says there's some sort of “smart text selection floating toolbar” coming to Android O. It's not known what this means, but it will allegedly have something to do with Assistant. Automatic text copying is cited as a feature. Equally vague is the apparent inclusion of restricted background activities. This would lower the power usage of apps running in the background. The mechanism and impact of this are not clear.
The MediaRecorder API is what allows apps to capture audio and video, and it's rumored to be getting better in Android O. Better how? No one knows yet. There will also be what 9to5 terms "tons of stuff" for enterprise users.
So, we're obviously missing many of the necessary details to evaluate these rumors. I would not be surprised if some of this turns out to be based in fact, but 9to5Google notes it has not been able to confirm any of it with other sources.