If T-Jax were a 3rd round pick, he'd have been an adequate pick. Not a good one, but an adequate one. Laz is right - he didn't totally suck (all the time), but he damn sure wasn't good either. He's one of those replaceable players that you look to upgrade but every team has (even the good ones).
That's why you try to re-structure him. In the end, however, if you can't get him to agree to a market rate for an average DE, you cut him and go sign another DE at the market rate for that ability.
He's not a guy you worry about one way or the other.
"Tyson - this is what we'll pay you"
"No, I won't take a paycut"
"Okay...well we're gonna need your playbook"
It's not a decision that worries me in the slightest. Either he'll take a cut to the market rate for this position and ability or he won't and we'll bring someone in here that makes sense for that contribution. Works for me.
If you can't draw a crowd, draw dicks on the wall.