Not sure he'd be happy with just competing. He wants to be the Champion. Not only did he realise hell never beat Jones but he's lost 5 of his last 8 fights. His trajectory is going in one direction and its not up.
That's been one of my gripes about Gus. He's a bit of a softie who struggles to recover from losing (especially in Sweden). I remember him sobbing after Rumble TKO'd him a few years back and again tonight he seems to have let a loss at home, in front of all the Swedish fans, destroy him.
As for being a Champ, there's a good chance Jones will move up to HW, which would vacate the top of LHW for 4 or 5 fighters - Smith, Gus, Santos, Reyes, and maybe a new comer like Johnny Walker. Gus has come within a hair beating both Jones and DC, so he should be more than good enough to compete against the 5 I listed.