Fooch's Update: Well it is now official. The 49ers announced they have signed Nate Davis to the practice squad and released QB Jarrett Brown.
There hasn't been official word from the 49ers, but Matt Barrows is reporting on Twitter that Nate Davis has cleared waivers and the plan is to sign him to the practice squad. Additionally, since the team wouldn't keep two quarterbacks on the practice squad, Jarrett Brown would seem to be the odd man out.
This certainly goes to show the thoughts around the league on Davis, as far as 53-man rosters are concerned. If he ends up on the practice squad, Davis can sign with any team in the league at any point. However, if a team signs him they have to place him o their 53-man roster for 3 weeks (I believe that's the time frame).
If and when the 49ers send out official word on this, I'll update the story.