Your take on this is a bit extreme. Jose is a lifetime .293/.349/.513 hitter coming off a .284/.330/.503 season and lead the AL in RBIs.
While DH/1B types aren't getting paid like they used to, Jose Abreu will be in the big leagues for several more seasons barring a dramatic drop off. The chances of him becoming a milb contract guy a year from now are pretty small.
If I were Jose, I wouldn't accept anything under 2/$30M. Which clearly he hasn't, which is why we are where we are.