2.) Contract year on a rookie deal
Whether the Bills were to extend Taylor or not beyond his rookie contract, players who typically are going into a contract year tend to perform at a high level to earn themselves a good payday. While Taylor more than likely would not have a repeat of his 2021 season (332 carries, 1,811 rushing yards and 18 touchdowns), who is to say that Taylor could not have similar production in picking up the lack of rush attack for the Bills?
The NFL is a league where some teams like the Los Angeles Rams have gone all in by trading away assets and it paid off for them. Clearly, there is no guarantee that the Bills would have this kind of setup, but it is an option that they have not tried.
Taylor is going to get paid by someone after the 2023 season. Whether it is with the Colts or another franchise, he will be looking for a payday and will be looking to produce on a contract year.