Like I said, my impression from the conversation was that 'benched' meant that, as of now, it looks like he will not be a starter next year.
I, too, will not believe it until I see it. Nelson was our best offensive threat last year and maybe the only offensive guy you would consider to be a really great player. I simply can't imagine that anyone has decisively beaten him out at this point.
What's interesting, though (and also the only reason I would consider making the post), is that the source is someone in a position such that he could very well know what he is talking about.