That makes some sense as I did think it surprising given the evening service. I wouldn't say it puts on a par with the 200 - that is only surviving as some funds have been found for it to continue whereas the 500 is probably self-sustaining.
Interesting to look back at the old Great British Bus Timetable (thanks to Timetable World) - the 1997 service was considerably worse!
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To be fair bus services from Banbury are much better now than in times past. Sure the occasional and shoppers services one day a week have all gone but compared to the 1970s we have:
Banbury to Brackley - hourly - used to be irregular much like above
Banbury to Chipping Norton - hourly - used to be a handful of journeys a day
Banbury to Daventry - hourly - used to be nothing beyond the local villages and an occasional shoppers service to Woodford Halse
Banbury to Oxford - hourly - used to be about four journeys a day run by City of Oxford plus more regular journeys as far as Deddington by Midland Red
Banbury to Stratford - far more now than the 1970s (but so complicated now!)
Banbury to Leamington Spa - about 5 journeys now, almost nothing in the 1970s
Town services were better in the 1970s (apart from to the places that didn't exist then)
I think Banbury was a very neglected corner of the Midland Red empire.
City of Oxford introduced the X59 from Oxford through Banbury to Coventry, I can't remember how often it ran but it did run a journey out of Oxford around 9am which I recall being very well patronised (used a dual prupose VR in my day), but that seems to have vanished and there's nothing now from Banbury to Southam.
And the trains are better, especially the London Marylebone service.