Yes/Yes/Yes to the first three. If the Bills Franchise him, they will hold all the leverage. The Bills showed Byrd last year that they will willing to let him sit on the bench if he chooses to do that. I just don't about "It is not cool to play in Buffalo". There are 53 players suiting up every Sunday during Fall and early winter at RWS. However, I do undertsand that Byrd might want to move to a WC team and might be stalling any attempt by the Bills to re-sign him by jacking up his request.
The Bills can wipe everything by Franchising him and trading him for a 1st round pick in this years draft or pay him with a contract extension.