I don't have any special knowledge or indight, but my own view is that's it's a fairly straight forward situation.
Schobel wants to play for a team closer to his home in Texas. He also wants special privileges and gave the Bills an ultimatum. They can let him be a ghost and 'show up on Sundays' or he doesn't want to play for Buffalo.
He wants to be released or cut so he is a free agent. The Bills aren't going to do that. No team will trade for him given the circumstances.
He has the option to retire and 'get on with his life'.
Aaron Schobel is the one choosing to drag this out. He is the one waffling. He wants that money and will likely show up when all is said and done. He expected another Jauronesque season where he could dictate his terms to the team like player got used to doing. That was not the case and now that the 8 million is on the line, he's shown his position.
Please, Schobel, just retire already.