Are they any good to eat? Don't look all that tasty from the pic. Heat seems to be getting to them. If you don't want them, dispose of them.

You could try to cut them all off and see if anything comes up edible for fall. I assume that the Onions will not grow all that great during the heat of Summer. Green Onions grow better (far as good to eat) in cooler weather.

While they do survive winter (even in zone 5), I'm not sure if people keep them going. Mine are usually a big messy smelly clump full of half dead shoots, so I get rid of them and start some new clumps.

They seem to be too old to save them.Also, they seem to have been deprived from water and nutrient. Onions are heavy feeders and need frequent watering.
But still you can cut them all the way to ground, sprinkle some fine soil on them, feed and water. They will most likly grow back.
The ones that you have cut, you can process and get the green and tender ones, chop them (~~1/8"),put it in freezer bag and freez.
Alternatively, you can dehydrare them after chopping and save.

They are not really old, in fact the bulbs are small and tender and there are LOTS of them all clumped together. The greens are yellowed so that part wont be any good. I might try to dehydrate them. That is something I have wanted to try. I dont have a dehyrdrator but maybe there is another method that would work. I'll research that.

I guess another part to my question was since they are "bunched" aka bunching onions, do they need to be dug up and separated again, in order for them to make larger bunches?

If these are white lisbon or any dividing variety, then you can dig them up, trim the top, and replant. Keep them (or any trimmed bunching onion) watered, and some of them will continue to grow.

Other than what's already suggested, another way to use up bunching onion is to use them like storage onion in sauces or dished. One pot of pasta sauce or a large baked dish can easily use up a pound of bunching onion.