Actually, the chemicals that are released are deadly to parrots and other birds. Accidently overheating a teflon pan will kill your parrot quick as a canary in a coal mine.
We only cook on stainless and cast iron (although I do have 1 non-stick pan for crepes only, and that one is never heated above medium).
And yes, we do have a parrot, so I'm not going to chance it one way or another.
And, according to a nurse I know, it can make your whole house uninhabitable for a few days because of the smell. She once told me she forgot and left a non-stick pan on the burner for several hours, she had to go to the in-laws for several days before she could return home.