Peelle was hurt in practice last week, and the Falcons immediately went out and signed Reggie Kelly. It was unclear how much time Peelle would miss—honestly, it's still pretty unclear at this point—but the Falcons must have felt it was serious enough that they needed to move ahead with Tony Gonzalez, Kelly and Michael Palmer and let Peelle go with a settlement.
It's a shame Peelle's days with the team had to end like this. Signed in 2008, Peelle finishes his three-year Falcons stint with 37 receptions for close to 350 yards and five touchdowns, with a flair for the dramatic on those touchdown catches. A capable blocker, Peelle also sprung more than one running back from backfield purgatory in his time in Atlanta.
So he will be missed. Look for Kelly to assume the nominal backup role, as expected, and Palmer coming in one those downs when the Falcons actually want their tight end to catch something. The fact that the coaching staff is apparently so high on Kelly—who is not ready for game action against the Jaguars—gives me comfort right about now.
Leave a fond memory of Peelle and wish him luck as he continues his career elsewhere, if you would.