Regarding Lee: I don't think some fans realize this, but from the team's perspective, he is basically playing for free right now.
He had $3 million guaranteed left on his contract that would be paid to him if he retired, so whether he's suiting up or drinking pina coladas in Mexico, Lee was going to cost us $3M against the cap either way. And then not having Lee on the team means you need to bring in a new player to replace his roster spot. Even getting a JAG to fill in behind him is going to cost you about $600K. Looking it up, Chris Covington is playing on a rookie deal for about $600K, and JML is making a bit over $700K.
So $3 million guaranteed either way and $600K to replace him with a warm body - that's $3.6 mil cap spent if Lee retired. (and probably how the Cowboys and his agent came up with his pay cut figure). We're spending $3.5M to keep him, so it is all upside from Dallas's point of view. If he produces, he gets a pay bump through incentives. People have called Lee "money wasted" or "stuff the Patriots wouldn't do", etc, but he's really on about as team-friendly of a contract as you are going to get.
And as far as Witten: look at Antonio Gates from last year for a near identical situation. He was signed when the Chargers starting TE blew out his knee and left them with nothing, so the team agreed to a 1 year, $2.5 million deal (that number look familiar?). During the season, Gates played about two dozen snaps a game and finished the year with a 28/330/2 stat line. 5 catches and 80 of those yards came in one big game, so if you omit that as an outlier, your average Gates / projected Witt game is about 1.5 catches for 16 yards. Basically just a dumpoff or two a week.
So if the past is a guide, Witten's going to be a part time player at best. Jarwin and Schultz are still going to get plenty of snaps to JAG it up, and it absolutely does not prohibit us from drafting a TE in the 2nd if the right guy is there.
To sum this whole thing up, I think the Lee and Witt situations are much ado about nothing. They're part time players at best, they aren't costing us any real money, and we aren't counting on them for any serious role.