I'm fine with Quero's bat at catcher. I'm definitely not fine with it at first base, unless he develops much more power and shows some defensive acumen over there. I also don't think it's particularly valuable to show that a catcher can also play first base. You can DH him, but again his bat doesn't carry that role and I don't know if it ever will. He's likely your second catcher and plays ~80 or so games there while Teel is the catcher for the other 80 (and is the DH when Quero catches).
Teel might be able to play first and hit enough to have some value there, but it's much better to put him at DH and keep him from even the remote possibility of getting injured in the field.
If you can get a solid outfield prospect for Quero (back half of the top 100 is likely, as others mentioned) then I'd seriously consider it. Otherwise keep him and see what happens this year. Maybe he takes a leap and you keep him, or you can trade him for something better. Or, if he sucks, you make the choice between him and Lee as the backup.