I'd take it a step further than that. After all, Nix re-signed Fitzpicks to an extension. I'd say that Gailey thought, and may still think, that Fitzpicks can be the starter. That he can mold him into a viable NFL starter that he can win with. Nix, for his part, takes input from the coaching staff on what they feel are the priorities. If you recall, Nix said coming into this job that he felt the Bills already had talent at the position but it was being held back by other factors. It wasn't until Trent Edwards jogged out of bounds on the last play of the game (surrendered) instead of slinging the ball down the field that it dawned on Gailey that Trent had problems that he couldn't fix.
Another problem with biding your time and waiting for the draft goose to lay its lucky golden egg is one of credibility. How long does it take for the average franchise QB to fall out of the sky on one's head? How often has that happened in Buffalo over the 50+ years the team has been in business? The point being that in the meantime, when you are diddling around waiting and being patient, everyone else sees teams ebb and flow and take risks, some of which do make them better. To be somewhat fair to Gailey, Jim Harbaugh is showing that it is possible to turn a team around without replacing your QB. However, while Alex Smith has struggled heavily, he does possess some talent, enough to have been a #1 overall draft pick. Further, Harbaugh took the roster he was given and designed to its strengths. Honestly, the Bills and 49ers had been in a similar cycle for quite some time, but the 49ers have made a strong ascending move the last 2 years, whereas the Bills appear to be sinking ever lower in the waves.