As for the "players cut left and right," this element seems to have been highly exaggerated. The ESPN analysts have indicated that there would not be this mass purging of talent or Black Thursday (or pick whatever day of the week would be after all the extensions).
It sounds like some fringe guys would get cut and maybe a handful of veterans but no mass hysteria as initially predicted. Bottom line is that you won't see players like Tom Brady, LT, or Antonio Gates on the waiver wire.
IMO, the impact will be that many teams will have very little money to spend on free agents, and target destinations for the name players will be some less than ideal teams vs teams that had some quasi realistic Super Bowl expectations.