I think Schefter is right here. The Pats have convinced me by their actions that they love Jimmy and they are keeping him long-term. And really, Brady is 40 years old, so it was probably somewhat foolish to think that Belichick wouldn't hedge his bets just in case Brady's ability does drop off. I don't think BB expects that it will, but it's a real possibility.
They could tag-and-trade Jimmy but that doesn't seem likely since Brady is another year older and they've just got Brissett behind him. Maybe Brissett can prove to be a capable backup (I think he can be), but that doesn't help much long-term since every year older Brady gets, the likelihood of an ability drop-off jumps up. There's no one I'd bet more on for "beating Father Time" than Brady, but he's not invincible.
I think that they will trade Brady in a year or maybe two years (feels awful to say that), assuming he does not retire first, of course involving Brady in picking the destination and circumstances. Though, there's also the possibility that Brady will choose to be Jimmy's backup. He will have won 6 or 7 rings by then, and he can still play the game he loves without taking the beating he is taking now. His family is hardly hurting for money, so I can envision him being paid just a few million a year to be the backup, enabling the team to afford Jimmy.
I think a trade or retirement is more likely than Brady taking a backseat but I can see it happening. But I believe now more than ever that Garoppolo will be the starting QB within 2 years.