I think you're over-analyzing "fairly compensated," that phrase doesn't have to mean that he's looking for a huge paycheck or to squeeze every last dollar out. I mean, we all want to be fairly comped, right? When did asking to be treated fairly turn into a sign of greed?
Hell, you can interpret that statement as being "I just want to go to a good team and be fairly compensated, I don't need to squeeze every last dollar out of the organization but I don't want to play for the veteran minimum, either." Wouldn't that interpretation be consistent with what we think we know about Grant Hill?
EDIT: And I'm discounting the liklihood of the "two contract offers" story, just because there's absolutely no reason for the Knicks to offer Grant Hill a three-year deal. Why would they add salary for 2010? I did expect them to maybe offer the full MLE for one year (which would trump what I bet Danny offers, a two-year deal at the LLE), but a three-year offer? Makes me think this "source" is full of it.