I'm trying to put all kinds of things back into Bat-continuity in a way that makes sense, including Bat-Mite and Ace, the Bat-Hound.
NOOOOOOOOOOOOOO!
(slams fist on the ground) DAAAMN YOU! DAAAAMN YOU ALL TO HELLLL!
I'm in favor of a swashbuckling, pulp Batman as much as anybody else, but BAT-MITE? There's such a thing as a pendulum swinging too far in the other direction. Batman's editorial vision has been off for the past few years, true, but let's not make the mistake of getting sentimental about utterly unworthy things.
Bat-Mite has nothing to do with what Batman's stories are supposed to be about, and is an unwelcome intrusion on the pulp feel of Batman's stories. He's an inferior version of, and derivative of, other, better characters (Qwisp the Sea Sprite, Mr. Mxyzptlk).
Ace the Bat-Hound, on the other hand, might be interesting. Hero dogs are a big part of adventure fiction, if they play him more like White Fang than Wonder Dog.
Other than that, Morrison's approach seems solid. I love the Neal Adams references, and it's very classy of him to give props to O'Neil (though none for Stainless Steve? Way to diss by omission, Granty). Batman's stories being described as "vaguely James Bond-ish" shows that Morrison has a real grip and feel for Batman's world. And it was very sharp of Grant to pick up on the Mike Barr thread, and I'm legitimately curious to see what develops.