Good points, but to expand, its not always a retroactive look at how much you got vs how much you paid, and thats what some people just cant figure out.
And its not that complicated. Lets say I have 3 awesome players who are all on pre-arb deals. They are all young. You may think: hey, we can get a little greedy here and cram a lot of talent onto this team, becuase these 3 are all super cheap and contributing, and we can take advantage of that by spending on guys around them and have this awesome team. Sure it will get hard to keep these guys , but we'll have a nice window of overlap before those guys need to get paid with the players we brought in.
Whether or not to extend your players is a decision. To have them for less cheap in the front end in order to buy some FA years at a discount. And like most decisions, its case by case.
Id rather have a guy give me 8 WAR for $10m when I have a good team around him than have a guy give me 10 WAR for $8m on a team that stinks (aside from him). There is a timing element to all of this.
Its not as simple as simple minds want it to be.