I believe what Jones has been doing is due to two main reasons. First, he does not seek negatively impacting the team's salary cap short term by cutting Prescott. Second, he wants a stronger leverage advantage in any possible contract negotiation with Prescott--which he essentially has none at present.
I am also more favorable in seeing Jones go full out salt the earth IF there is a strong possibility he plans on ending his relationship with Prescott. Just release him now. Face the consequences now no matter how harsh they may be. At the very least, Jones would be establishing a severely strong example of his expectations for the team. And not just for his roster but the entire league. It is not like he lacks the capacity for making extremely rash decisions (see Jimmy Johnson divorce).