Under legislation passed this year, the FAA can get your VA records from the VA directly. You don't have to "give" them your VA rating...they can just go get it. I think by answering that question in the affirmative, it is putting a flag on your medical that the FAA can then go check against VA records and decide if they want more information from you or not...I see it as a slippery slope.
I'd like to get the legal definition of "disability pay" - if removing a few hundred dollars before tax and giving it to me "tax free" counts as "pay", I don't see even filing a claim as worth it for $10-20/mo. If I cross the 51% threshold and get a whole other check for disability, I think it opens a can of worms. On one hand, you're >50% disabled and getting concurrent receipt for life altering injuries suffered while in military service and on the other hand, you're holding yourself out to the FAA to be in perfect health and able to be entrusted with the most scrutinized, legislated, controlled, and monitored career field in the history of the world.
And I've got a friend about to retire who completely pulled his VA claim because of this (he's returning to Northwest...nee...Delta)...