I think the party here that doesn't want to settle regardless of the terms is the NFLPA. For them this isn't about deflated balls or even Tom Brady, its about getting a precedent set in a Federal Court in NY that they can use as leverage to stick it to the owners in the next CBA (if not before then).
A settlement would obviously have to be no games and no acceptance of guilt from Brady, he wouldn't accept any less. But from the NFL's side they will never admit that their processes and powers were inappropriate. So a settlement from their side would likely revolve around lack of evidence against Brady instead of a labor issue. This would vindicate Brady personally, but the NFLPA doesn't care about that, they care about beating the NFL and regaining some control.
I think the NFLPA wants to take this as far as they can because they feel they are onto a winner. At the same time I think a lot of the owners see that as well and know this verdict could be a huge hit to them and the commissioners powers. I hope Judge Berman not only rules in favor of Brady and the NFLPA, but tears the NFL and particularly Goodell a new one in his verdict. I know a lot of fans and media stopped paying attention once Brady's side of the story started to come out, but it will be mighty difficult to ignore if a Federal Judge destroys Goodell and the NFL for their despicable behavior in this matter.
Wilfork#75 has made a VERY wise comment. I think you have it exactly right. The NFL brief to Berman says, basically, that Goodell can do any dang thing he wants, given the CBA and past arbitration rulings. Kessler and the NFLPA, on the other hand, are attempting to build a very tight box limiting the Commissioner's authority. Their brief builds a four-point argument based on precedent in BountyGate, Rice, and Peterson. The Brady case would further limit Goodell on disciplinary authority by requiring (1) notice of charge, (2) tighter rules on "fairness and consistency," (3) fundamental fairness in the investigative and appeal phases, and (4) more clearly demonstrated impartiality.
Berman wants to force the parties to settle and doesn't really care about establishing precedent.
Goodell and the owners, given the enormous downside they face if Berman rules in Brady's favor, should be eager to settle.
Even Brady, as the season looms, might want to settle to put this whole, stinky matter to rest.
But I can see absolutely NO REASON Kessler and the NFLPA would settle without substantial concessions from the league on future disciplinary standards (which the league will not give). Therefore, a settlement doesn't benefit the union at all. As Wilfork#75 has said, the huge win for them is a Berman ruling that restricts Goodell's power in all future cases.