Ubaldo is a good signing for the money, too. We're not paying him ace money.
But realistically, I don't think Cruz is really all THAT big of an improvement over the O's other options at DH. Between all the guys we added this offseason and the continued improvement of Urrutia, I think we could have kept someone in that spot all year who was better than replacement level, which was not the case last season. But we don't compare Cruz to last season, we compare him to the alternatives this season. Is he better than Delmon Young, Quintin Berry, Urrutia, et al? Probably, but if you get to play the hot hand out of all those guys he's probably only 1-2 wins better than them. Given that in the current market 1 win is worth about $5.5 million, it's still a good deal. But it's not outstanding unless he plays very well this season and brings back draft pick compensation next year.