I can't see an actual 'threat' in the statement. Seems to just say if these current talks don't result in a settlement agreeable to both sides (and it seems as if they won't from what both sides are demanding) then that's it. No more talks and I assume things stay as they are for the foreseeable future.
Which is how they've been for most of the lives of most Cypriots in Cyprus today I imagine.
I haven't met any GCs who want to and intend to go back and live in the North (or even many who ever did live there even if they had land or property there). The property question has now been shown to be able to be settled in the Courts.