I don't get the whole "using Daniels as a PG thing". According to 82games.com he played a little PG in 07-08 when Indiana was desperate because all they had was Denier and Tinsley but other than that he's been a SG or SF.
Let's not confuse being able to handle the ball well with being a team's primary back up PG because he can't do that. Daniels I feel will be a great pick up to do exactly what this team needed which was spell Ray and Paul and still be effective. He's a great pick up in that sense. But this team still needs another big(Baby, Joe Smith, Rasho Nesterovic) and a back up PG.