We will play hockey this season. Remember in 1994, there were proposal rejections from both sides around this time of year. Then, the players and the owners finally started to negotiate. I think Bettman will unveil a hybrid system tommorow, something with a luxury tax, and a severe penalty, and then a hard ceiling at around 50 million.
The PA will most likely reject any offer that has any type of cap in it, but I really believe the owners of some profitable teams will see the detriments of cancelling and entire season, and will lobby against that when the time to flush the season is upon them. As for the PA, I think the players aren't finished offering proposals, thats just posturing. All of this "last proposal" stuff is just rhetoric.
To be forward, the PA will start to make some significant concessions regarding to systemic issues before this season is washed away, therefore creating the basis for a new CBA. This is all just my opinion, and my prediction, and god I hope I'm right.