Re: Kevin Walter can go sit on the bench..
At this point KW is a larger version of David Anderson; can't get separation consistently and cannot make plays down field. He's probably better relegated to being a slot WR at this point where he can use his size to move the chains.
I think one thing is pretty clear; he doesn't belong outside at #2 and he's going to start losing PT to guys who are producing.
I Think the Texans brass wanted to keep him around for all the tag lines that people here use: leadership, RB, know system, ad naseum and because they were not sold on the young WRs (rightly so). However, the paycut he took seems to have a pretty clear message that he wasn't earning his keep on the field. I wonder had he refused the paycut if he would've been cut outright.
I think he stays this season, but next year he's likely going to get cut.
Posey looks like he was a reach and I think a lot of people's premonitions about it are being confirmed as the PS goes on. For better or worse barring not showing up at all, he's going to have a spot guaranteed because of where he was drafted.