It may come down to this.
Would you rather sign Baynes, both a great fit and teammate, for the MLE or would you sign Dwight, a better player but substantially worse teammate, for the veteran's minimum?
You know what you're going to get with Baynes. A solid role player who is good for 15-20 minutes of bruising defense a night, and he'll be the first guy to cheer the team on from the bench. At the price of the mid-level exception, Baynes is the perfect backup big for this team.
On the other hand, you don't know what you're going to get with Dwight. He still is an above average player who is good for 25-30 minutes of terrific play on both sides of the floor, but that may come at the expense of a happy locker room. At the price of a veteran's minimum, Dwight is an overqualified backup big no matter where he goes.
Personally, I think that will be a tough decision for Danny.