For the vet minimum or similar? Sure. He's a good character guy.
Not clear he can really play at a high enough level on offense to make up for his defensive issues.
Very sad to say that, but it's the truth.
I think a contender should give him a shot to find his way back to form. A good team that needs scoring off the bench and can afford to take the defensive hit. But any team that signs him should be ready for him to not earn minutes.
If (as seems likely) Kyrie walks, I think the team ought to look into trading for Mike Conley if they are trying to be competitive next year. If the team is refocusing on a youth movement, then it would make sense to use the MLE on a competent veteran (e.g. Collison, Rubio, Joseph, Beverley).
Maybe Danny Ainge will re-sign Terry to try and recoup value there, expecting that he'll be better and happier as a full time starter without Kyrie around. I kind of hope Terry is gone, but if the past is any indication, Ainge hates to let assets walk away for nothing.