For all of us that have never taken apart a banana, is this normal or abnormal? What are we looking at? Is this part of some kind of cap?

Yes Joe;
It is the cap section that a lot of the guys will have given up on upon buying those models.
I have understood through careful assessment and study that there is three grade of fiberglass in the model's components of this model.
And all three of them with a different degrees of fiberglass density and hardness.
The cap has been discarded in some of these choices for aesthetic or a non willingness to repair .
Inept docking practices will be the reason for this kind of damage.
The cap was refasten by using stainless fasteners;
An emergency repair at best.
I do remember my disapproval the first time that I felt the section with my hand.
And then, did look at the port section and saw the same...
And understood that the same "operator" had been docking this poor girl in need.