If you haven't seen/heard it yet, take the 15 minutes to go listen to it. Listening to him, makes you really think that the Bills are looking at the TE position as one of great importance to them. He talks specifically how they aren't considering replacing the Fullback position, rather using one of the current TE's (Fine, Shouman, or the new guy they got off of NE's practice squad) to fill the spot. He even went as far as to say that they really only have 3 TE's (making the strong assertation that Royal is not being considered at all to be retained) and they would need 4 or 5 TE's on the roster. He further went on to say that getting an all around TE that lines up on the line and can block and catch is such a rarity and a difference maker in the league today. If this isn't a strong endorsement for their need for a Brandon Pettigrew, I don't know what else would be except if he said the guy's name outright.
Of course Schonert is giving his viewpoint on his side of the ball, but considering Jauron's comments the other day of saying how they need to score more and be more consistent on offense, I have to believe that Jauron is agreeing that they are needing someone that can do everything at the TE position.
They tried a few years ago with drafting Kevin Everett high, then they went the way of signing a veteran in Royal. We all know how that worked out. My strong guess and prediction based upon this information "leak" is that they draft Pettigrew at #11.