I have to say I'm not particularly surprised by this latest threat, and there is nothing in the history of the BCCI that doesn't suggest that they wouldn't go through with it.
If they do, though, then there will be a huge public backlash when the next India-less ICC event rolls around. The IPL can work but I'm not sure it is sustainable without international cricket. Also if other boards hit back and stop sending players to the IPL, its star value will be seriously diminished.
Another facet is that if any one of the recently retired stars takes a stand against this, it will greatly hurt the BCCI's case. If Tendulkar/Dravid/Laxman/Kumble/Srinath/Ganguly come out of the woodworks and deride this proposal as rubbish (especially Tendulkar), then the public will automatically side with them.
Nope. Sachin won't do it. He is a very diplomatic guy who doesn't like to talk unnecessarily and get into issues. And no one can fault him for it. That's how he has always been