One thing that PCB do is work hard to tell other boards that its a "political" cancellation and not the "security" related cancellation because in later case, other teams will get pretext.
To do that PCB should not request BCCI or agree to any suggestion of neutral venue. Period!
Everything is out in the open. The world is a witness. What PCB has the power to do, it can backfire. Remember the time when PCB were involved in organizing and bringing over the Australian security task force for site visits before Champions Trophy. How that plan backfired, the things in the report that was passed onto Australia after the assessment by the head of the security team was mind-boggling.
PCB cannot lure if their minds are set on looking at Pakistan as the terrorist hotbed, how much guarantee do foreign teams need except for the fact that PCB have always assured the security equal to the head of state?
What guarantee did BCCI give to England for continuing the series other than deploying heavy rangers and army throughout the area? Haroon Lorgat from ICC said that you cannot go more than that. PCB have gone on to lengths to entice foreign teams to tour. The foreign teams' assumptions and pretext may not/never change.
1- Not the right reason to remove the ICL bans. If PCB wants to remove it, then better remove it without using this reason that this is in retaliation to the Indian cancellation. The decision to cancel the tour came from the Indian Govt. and not BCCI. The BCCI have supported PCB on several occasions during the last few years and we should remember that and should not be irrational towards them.
As far as IPL is concerned, again PCB should not cut ties with IPL. Again we need to realize that this is political decision and lets accept the fact that sooner or later these two countires will start playing cricket again. Any hasty decisions now will make PCB look stupid when situation will start to get better between the two countries. Having said that if the IPL contracted Pakistani players don't feel safe in India due to any anti Pakistani sentiments or the Govt. of Pakistan doesn't give security clearance to these players then that's a different issue.
1- In fact, PCB should be the first one to remove the bans on the basis of tour cancellation, what else logical reason would PCB give other than in retaliation (or as a move to "ease the tension")? It is hard to make something up in this situation, no? Remove all bans and be the first board to do so from sub-continent after Sri Lanka's bleak attempt where they had their banned players play in domestic but not internationals. PCB have now a valid and logical reason to take a step.
And why should PCB not cut it's ties with IPL? God forbid if a similar incident happened in Pakistan and the blame was on India, would BCCI/Indian government let their players continue in PPL or Pakistan's domestic circuit? Would they not consider parting ways?
The decision does not have to come from "PCB" for removing the ICL bans, it can be directed as the decision by "Pakistani government".
Any guesses who will be the eventual losers if the above happened.
PCB is not making any money by banning Pakistani players while the amount of money that these players are earning is largely going to these players, aside from their agents and whatnot. PCB is not making a dime out of any of it's players in IPL. Only players will suffer, as you mentioned.