I'm not so sure.
While on one hand we need him even more for next year, on the other, with Green now on board, the C's now have 3 players (Green, Pierce, and Rondo) that are going to have to be on the books in the summer of 2012 when the make a run at Howard or someone else.
And keep in mind that though Green himself expires in 2012, his nearly 6 million dollar cap-hold will stay on the cap unless the C's renounce him, which will take away their ability to use their Bird Rights to re-sign him.
So add Rondo's 11 million, Pierce's near-17 million, another 6 million for Green, and you're already at 34 million, and that's assuming the C's have no one else on the roster.
How much can we actually commit to BBD? Well, it depends on the cap. Right now it's in the mid-50s; however, what happens if under the new CBA it drops to 50 or even 45 million? All of the sudden having Baby on the books potentially prevents us from making a run at a big name free agent and/or keeping Jeff Green (if we are then forced to renounce him to get that big name free agent).
So, I'd be careful. I'd much rather see Danny overpay him this summer for 1 year, than lock him up long term.