That just means that his playing again is no longer a safety issue. It is still a performance issue, however.
He can't throw the ball---at least not with any decent velocity, yet. The article says he is making progress, but he still has a LONG way to go to be able to throw at an NFL level.
IF the Colts release him, any team that wants him will not have the luxury of waiting until he is 100%. They will have to sign him and hope that he recovers fully. That is a HUGE gamble.
I don't think the Chiefs need a Peyton Manning to compete for a Superbowl. We just need a decent QB and a better O-line. If it were me, I would not take that kind of a risk on a QB who may never fully recover. We are talking about nerve regeneration here.