What's your definition of elite then? One of the top 5 players at his position would be elite in my book. Regardless, even if he isn't elite, but near-elite as a top 5 player, then you have pay him to retain him.
I agree with shawnsta in the general slant of his Raji comments; I would disagree on the 2011 defense being better than 2012, despite what happened in SF. On his best days, Raji is a top 5 NT, which is close to elite, but not quite. To me, elite is a guy you'd give serious All Pro consideration from time to time, and a solid Pro Bowl candidate every year barring injury. Raji hasn't passed the bar since 2010. But the "elite" term is splitting hairs.
There are games, too frequent in my mind, where he doesn't fight double teams. His motor comes and goes.
On balance, Pickett's a better run stopper, and Raji hasn't given much in the pocket collapsing department on a regular basis the last 2 seasons (pressure, not sacks, is the issue). That really doesn't look like elite, however you measure it.
That said, you cannot have Pro Bowlers at every position. But every player is a value proposition...what is he paid relative to his contribution to winning, and perhaps equally important, what alternatives do you have. As to the value proposition, the kind of money some people talk about for Raji is not a good value based on these past 2 years.
Alternatives? There's two drafts coming up in the interim. The best argument for Raji is replacing both him and Pickett will not be easy.
Another problem is we tend to look at each player in isolation...sound arguments can be made in each case where a potential release, FA loss or retirement is bandied about...Jennings, Finley, Woodson, T. Williams, Hawk, Raji in this case, Pickett next season. The problem arises when you consider all of them together...I think it is fair to say we cannot replace all of them at once and have a better team...there just are not enough draft picks and no slam dunk upgrades on the bench.
Sometimes guys get overpaid because of other worries that need to be addressed in the draft, and Raji could be one of them. Maybe he gets tagged in 2014 if alternatives are not available. In any case, I see no rush to re-sign him with a year left on his deal.