Amendola will be cut. Whether we then sign him to another contract for "real cheap" is another matter. The patriots and others will compare him to what is available at what price. I agree that we will not likely be competing for top shelf receivers. It would not surprise me if Amendola is one of the top ten (or even top five) receivers available after the first month of the pre-season.
Wide receiver depth is indeed a serious issue for the patriots. We have Edelman and LaFell. We need one more, even to play 3 WR sets. We also need a backup or two.
Who do we have competing for the #3 WR roster spots for next year (considering Amendola gone)?
Dobson
Tyms
Boyce
Krause
Orton
Amendola and other free agents will certainly considered. I see us bringing in at least two wide receivers to compete with this weak group, perhaps including Amendola. I understand that many think that this group couldn't possibly perform worse than Amendola has been performing. I strongly disagree, as apparently does Belichick.
You, as others, seem to think that patriots can simply sign Amendola at the league minimum if they wish (real cheap were your words). Perhaps, you all are right. Perhaps, Amendola will find that no one else is interested. However, I suspect that some other team would be interested, and that a home town discount would not happen. After all, he might want at least a chance to compete for major reps elsewhere. He could get them here, but I would suspect that going elsewhere might be considered more desirable than taking a 75% pay cut from the patriots, with the expectation that he would be a solid contributor.