If Miami cuts him an eats the contract (which they likely will do) and he is willing to take a 'hometown discount' (which he may do now)-
Why in the hell would you not consider taking him back?
Does he want to be the #4 WR? If yes, then, there isn't a problem, if not, then I wouldn't do it. Wheaton and Bryant are developing nicely as #2A and #2B, but for now, #2 and #3, that leaves Wallace as #4.
Papillon