“… He can set himself up as the warlord of that region. The Russian Army in its current state could do little to prevent it.”
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LOL - The only thing he is setting himself up for is a bullet to the brain. Just IMHO, of course.
As more reports come in, this doesn’t seem like a rash decision by Prigozhin. There is a lot of planning behind this.
He waited for the Ukraine offensive to reach a point where the Russian army would be tied up at the front.
Then he moved in behind them seizing the army’s support and logistics.
Is his goal to set-up a situation where the bulk of the Russian Army is trapped between Wagner and the Ukrainians? Those forces then have to either join him or face destruction.