A few thoughts.
Most guys would not be willing to do something like this to stick with a given team. I think it's really cool that Taylor was willing to take a hit to stick around.
The Packers are going to be really crowded in camp along the offensive line. Bakhtiari, Jenkins, Linsley, Turner, Wagner, Taylor, Patrick, Runyan, and Hanson can all be considered to have a good shot at making the roster (obviously on a spectrum-- Bakh is a lock, Hanson will have to earn it, etc.). Then you have guys who will be fighting to make it, like Madison, Light, Nijman. Stepaniak seems like a PUP candidate, but if he's totally healthy then he's in the mix too.
I still think Linsley could be a surprise cut or trade candidate.
Keeping Taylor makes me wonder if there is a particular design in mind. Do they want to provide competition for Turner? Or do they want to free up Turner so that he can provide competition for Wagner? Or do they want to cut Linsley and move Jenkins to center? Or is it simply that they want to stack as much quality OL talent as they can and let it sort out?