That's new to me. I didn't know that the 7 swords of the mist worked together as one team. I was under the assumption that only Zabuza and his hench-men attempted a coup against Mizukage and failed. As he left the village, his name was immediately given to Konoha as bounty against him ( Kakashi said this fact). But your statement might as well be correct.
I'm not quite sure, how his sand powers and Shukaku are really connected. But he should have at least the level of power he had and even more, when he had fought Deidara, to re-attain the title of KazeKage.