Several things can be simulataneouly true.
It does not make sense to give up draft assets and $11 mm of cap space to sign Derrick Henry
Item 1 is not the only option regarding Henry.
Trading for Henry is, IMO, a one season decision. The only way it might make sense depends on what the teams plans are with Ed Oliver. Oliver and Henry have almost exactly the same Salary Cap impact for the 2023 season. Both Henry and Oliver can likely be replaced with much more cost effective assets in any NFL draft. The Bills can't just cut Oliver and recover the cap space. If the Bills plan to move on from Oliver after the 2023 season AND if the Titans in an effort to accomodate Henry were willing to trade Henry straight up for Oliver, the question becomes a one season question. Would the Bills be better in 2023 with Henry, or with Oliver. Personally I think the anwser is they would be better with Henry.