I have no problem with the stance Watford are taking. Having a 'better than expected' season thus far. Allowing their manager to leave at this point in the season is a complete no no. Its true Silva could have just said he isn't leaving for Everton. That kills it there and then. Hasn't really done that in my view.
I do think he'd come to us, but clearly doesn't want to resign as it would reflect on his character. He wants the clubs to sort it, and rightly so.
If Watford remain steadfast, all Silva can do is resign. It would leave bad blood all round. Can't see him doing it, but what do I know.