Prediction:
1) First, people will say this is just smoke/posturing from his people
2) Once it becomes clear that it isn't just posturing, people will move on to saying he isn't worth the price
3) Whatever team Houston signs with will dole out a huge signing bonus and spread the contract out long enough to manipulate the salary cap.
4) During training camp, Dee Ford and whatever slapdick FA is signed to take Houston's snaps/role will be viewed as a sure-fire breakout star who will match Houston's production (since he's never getting 20 sacks again, anyway).
5) And, eventually, it will be obvious that not signing him was a huge deal, but the Chiefs homers/apologists will still defend it as the right move, for various (bullshit) reasons.
Sure am glad the Chiefs locked up Alex Smith instead of Houston. I mean, when you have the choice between locking up a completely mediocre player at an impact position and a completely elite player at an impact position, the choice is easy, right?