The tendon is ok, so that's definitely good news. It is a partial tear, inner bicep.
The tear was deeper than I expected, though. During the initial exam the Doc extended my arm along my side, palm facing forward, placed his finger where the tear is, and did a curl movement with my arm. His finger half disappeared into the muscle belly. Looked really weird.
He actually laughed and said "yeah, it's torn all right!". He's a bit of an eccentric, but he has a good reputation as far as sports injuries are concerned...
The mid part of the bi, where the 'peak' is supposed to be, has actually moved a little bit back towards the top now. That's a good sign, I guess, but the tear is all the more visible now, especially when the arm is extended.
Doc doesn't recommend complete rest (although he said he knows that a lot of other docs would). Part of the therapy is actually getting me on the Elliptical trainer, getting my heart rate, up, and very gently pulling with the injured arm to get a bit of blood flow going.
I was a bit sceptical at first, but it's making more sense to me now.
Doc will be monitoring my progress on a bi-weekly basis. I'm fairly optimistic, hoping for the best.