In a way it shows that NP is perhaps less distant from P than imagined. Whether it can be _reduced_ to P in some gigabrain way, or whether that can be shown to be impossible remains to be seen.

It is definitely progress towards an answer to P ?= NP.

It's conceivable that each of them is smaller than the next, but also that e.g. P < NP = all the sigmas < PSPACE < EXPTIME or many other possibilities. I think the general consensus is that it's more likely that there are more inequalities than not, but the fact is that we can't even show that P is less than PSPACE so far, which would be extraordinarily surprising if it were true.