How much of the cost of security for royal family members is covered by taxes and how much by The Firm is unknown to me, but it seems The Firm decided to stop covering Harry himself. Meghan objected to the prospect of still being in that "senior royalty" and putting her baby "out there" to be seen in public at events and not have a measure of protection to cover them like it did Harry.

This isn't about hats, this is about the apparently calculated decision to stop paying for Harry's security as a way to force him to toe the line. It didn't work. He doesn't stop being known as a royal just because they say the rest of the royal family aren't going to treat him that way any more. Whoever is involved in running The Firm (and it may not be the top royals themselves, it might be like their own bizarre version of a Home Owner's Association, some one or cadre within the family they all agree knows the rules and allow to dictate to them who can do what according to the covenant they sign. It also reminds me of the senate Parliamentarian here in US Politics.) This is about The Firm hanging one or more of their own out to dry.