Portland's approach makes sense even if the dollars seem excessive at first glance. Yes, they're overpaying Hedo Turkoglu, and given his age it's possible they'll end up eating the last two years of the contract. But the way cap space works is that a team might get only one shot at using it, and must take advantage by making the best, strongest move it can for the best fit available.
Turkoglu for $50 million is an imperfect solution, certainly, but it's a far better one than squandering the space by waiting, or by paying similar money to jam a square peg into a round hole. And as Turkoglu's soon-to-be-former teammates in Orlando showed last month, even in the current economic situation overpaying for a part that fits can work out awfully well.
Also, not too long ago David Thorpe talked about how Hedo Turkoglu could fit in Portland.