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0e1f616
(Get the code!)
It looks to me like Banshee *is* aware of the notifications and displaying a window to the user instead of popping up a useless notification using the notifications system. The notification is there to enable the user to quickly skip the current item, as well as notify them what the current item *is*.
If, like me, you *want* the old system in your session you can:
killall notify-osd
/usr/
And you'll be running the trusty and more functional older utility instead. Get that into your GNOME/desktop environment autostart properties somehow or another in a script or whatever, and you're set.