I'm imagining that Daniels told the C's that he would sign a two- or three-year deal if it was for ~$2.5M - $3.0M per, but that if all they could do was a deal for the LLE he wanted to be a free agent again in twelve months.
Makes at least as much sense that the reason Danny was working the phones so hard was so that he could get Daniels locked up for a couple years, rather than JUST so that he could unload TA or so that he could be nice to Daniels and get him a little bit more $$.
If you're Daniels, you don't WANT to be on a $2M deal for more than a year, do you? Unless he gets hurt, it's hard to see how he would get less than than in 2010. He is coming off from a decent-sized contract, this isn't a player coming off a rookie deal who's never gotten paid before.