I don't think James expressed himself very well, and I don't think he meant it to come out as callously as it did. Certainly, the players are the game, and certainly, you want to put a good product on the field to keep fan interest.
That said, I still think his overall point stands.
Take Mookie, for instance. If it's going to take a 10 year deal to re-sign him, I'm letting him walk. He can be replaced. Not necessarily by a single player, but with the money it would take to keep him, the Sox can certainly replace his production. And, I'm guessing that the fans would be just as happy if the team continued to be a playoff contender.