Fair, but the contract is structured in a way where that can still happen. Basically they are paying him more this year to lock him down for less than what they'd have to give him if he lights it up. Even if the odds of that happening aren't great, you have to take that chance considering how important the position is. And in my mind, he showed enough last season to take that chance but not enough to declare him the long-term solution. And this contract reflects that.
I'm not a big Whaley guy, but this is a good deal for the team. The QB position, rightly or wrongly, has way too much say in how your team performs. And there is a dearth of talent at the position. You need to act if you think you have your guy. It's not like the Bills have a blue-chipper waiting in the wings to come save the franchise. Taylor's play could mask Whaley's other questionable decisions (Rex, Clay/Shady contracts) to the point where it keeps him employed beyond this year.