My thoughts from the DKC reddit page:
For the current market it's in line.
I think that in a year or two, though, we're going to see a correction. Teams will save their money for star guys, and the middle-class salaries will dry up. Paying a borderline starter $10 million per year -- i.e., about 10% of the cap even after it spikes -- still isn't great business.
It's fine if you only do it with one guy. The problem is when you start signing multiple non-stars to medium contracts. If you figure an elite team needs two max guys (let's say 30% of the cap each) and a third strong player (20%), that's $80 million taken up of a $100 million cap. Signing guys like Chandler to another 10% of the cap really limits your flexibility if you want to achieve that top tier of contention.