"There is no evidence that view has changed," he told the court.
Mr Pickering noted Droudis hadn't breached any conditions of her current bail but said the Crown had worries her extremist views were "still operative".
Droudis, 34, was charged in November 2013 with the murder of Monis' former partner and mother-of-two Noleen Hayson Pal.
Ms Pal, 30, was stabbed and set alight at a Werrington apartment block on April 21, 2013.
Droudis was granted bail in December last year.
The decision to revoke her bail comes after New South Wales Attorney-General Brad Hazzard last week asked the Director of Public Prosecutions (DPP) to immediately review the first bail decision, after questions were raised about Monis' own bail arrangements.
Droudis' defence argued the DPP application was frivolous and based on irrelevant evidence.
"The video appears to be nothing more than ... (Droudis) being a spokesperson for Mr Monis," her legal representative told the court.
In revoking bail, Mr Henson noted the presumption of innocence was one of the cornerstones of Australia's legal system.
"In this application, it was not the function of the court to elevate the assertions of the crown or the response from an accused person to a status of fact," he said.
New South Wales Premier Mike Baird welcomed the court's decision.
Monis was on bail when he took 18 people hostage inside the popular Lindt Chocolat Cafe in Sydney's CBD last week.
The siege ended 16-and-a-half hours later with the deaths of barrister Katrina Dawson, shop manager Tori Johnson, and Monis.
Monis had been in and out of custody at various periods in 2013 and 2014 after being charged with a number of offences, including being an accessory to the murder of Ms Pal.
In December last year, he was granted strict conditional bail following a three-hour hearing.
Then, six days after new New South Wales bail laws came into effect, Monis was charged with fresh offences relating to the aggravated indecent and sexual assault of a woman in 2002.
Droudis' case is due in Penrith Local Court on February 27 when she will appear by audio visual link.
Floral tributes to be removed
Floral tributes for the Sydney siege victims will be removed and a marquee erected ahead of a forecast for rain.
Notes, messages and cards will be preserved when the existing blanket of flowers at Martin Place is taken down and composted on Tuesday.
Hundreds of floral tributes have been left at Martin Place. Photo / Getty
Parts of the tribute for Lindt cafe manager Tori Johnson and barrister Katrina Dawson will remain under a marquee.
The removal of parts of the memorial has been designed to preserve the messages and not to discourage people from paying their respects at Martin Place, a spokeswoman for the New South Wales premier said.
An army of volunteers from the Red Cross, Rural Fire Service and State Emergency Service will help collect the flowers while chaplains remain to counsel visitors.
Condolence books will also be available at the Sydney Opera House and New South Wales Parliament House until the end of January.
They will be bound in several volumes and the Johnson and Dawson families will each receive a copy.
A permanent memorial will be discussed with the families once they are ready.
Financial donations in memory of the two victims have been directed to mental health organisation beyondblue and The Katrina Dawson Foundation.
Memorial services to be held today
Siege victims Katrina Dawson and Tori Johnson will remembered at formal services today, a week after they were killed in Sydney's Martin Place.
The well-regarded barrister and Lindt cafe manager were killed in the early hours of December 16 after being taken hostage by gunman Man Haron Monis.
Grieving family and friends of Mr Johnson will pay their final respects to the 34-year-old at a private memorial service at St Stephen's Uniting Church this morning.
The church in Sydney's CBD is only a few hundred metres from where he died.
Ms Dawson's memorial service will be held in The Great Hall at her alma mater, the University of Sydney, where she studied Arts/Law.
The family of the 38-year-old mother-of-three, who was buried privately on Monday, have asked attendees to wear a splash of aqua, Ms Dawson's favourite colour, to honour her life.
Organisers have also asked for donations to be made to the Katrina Dawson Foundation instead of flowers.
The charity was set up last week for women's education opportunities.
In the wake of the pair's tragic deaths, thousands of Sydneysiders have visited Martin Place where the public outpouring of grief has manifested in a sea of floral tributes.
Read next: Sydney siege: Caller tipped off authorities two days before attack
- AAP
