The CAP does use their 148.150 and 148.125 simplex freqs, or repeater freqs, depending on if your Wing has started the migration to the new P25 repeater pairs.
As far as I know, 148.150 and 148.125 will still be in their radios.
And yes, ISR Radio is Narrow FM, ICOM IC-4008's retuned for 397 to 400 MHz.
They do have the 38 CTCSS "subchannels" still available as well. Hopefully we can expect to see more usage of these radios not only stateside but also for overseas military operations. The idea of giving every person in a unit a short range (500mW) radio is a great idea, and frees up FRS frequencies, especially in parts of the world where the frequencies for FRS are used by other services.