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If you let your players go unsigned beyond the 2nd extension then they should be released to free-agency where the free market will determine their value. This creates a deeper free-agent pool which allows the lower seeded teams a better chance to rebuild on the fly.
On other hand, the real NHL does allow this as well and they still have a decent free agency pool year-to-year.
I, for one, would have moved pending FAs earlier at the last trade deadline if I knew we were not going to be able to move them in the off season.
Yes (only pending FAs, no limitations to trade value)
This is essentially the same as having no restrictions at all. Unless you are stipulating here that the return for an FA could only be Picks or another FA?