Is Dak elite? In my view, and I'm not going to drag in others' opinions, just to keep things simple, no. Gaudy stats aside, he hasn't demonstrated that - too many missed throws at critical points, doesn't have a great pocket presence etc. Not going into a full blown quarterback analysis, either, that's a subject in itself.
But paying him what today amounts to elite quarterback play, on a long term deal, is a viable strategy. Like kskboys pointed out, teams spent high draft picks on Leaf, Russell, Young and all of those guys were total busts, and it wasn't always due to their physical play, guys like Young had other issues, ones that you couldn't have foreseen probably but still they didn't work out.
With Dak you know by now what you have. ANY draft pick is an unknown quantity. The decision the Cowboys have to make is whether to go with the bird in the hand or the quarterback in the bush. In order for them to get the quarterback in the bush would at this point mean a huge investment in draft picks and possibly other players. I find it interesting that some here claim our players are all "quitters" or "trash", yet want other teams to trade with Dallas and give us high draft picks for them. NO team is giving a top-5 draft pick for a quitter or trash player, and trading a Martin or such means you're just swapping one great player for a POSSIBLY other great player, and that's not really improving your team. You'd be placing your faith in the new passer being "elite" while not giving him the supporting cast you need.
The problem would be sort of like teams like the Seahawks, assuming Wilson is "elite", sure they got to the playoffs but Wilson, despite being "elite", didn't get any farther in the playoffs than Dak did just a year ago. And Wilson only got to the SB, and only won one, when he had the number 1 raked defense.
I think Jerry, et al, is going with the strategy of having a pretty good quarterback and supporting him with a great line, running game and very good defense. Is that going to work? Who knows? So sure paying Dak $35 or even $40 million a year is risky but first of all that's long term, with the increase in the cap Dallas has plenty of cap space to sign him and still sign Cooper, etc. $40 mil now won't be the highest paid in a couple of years, again it's a risk but there's no way anyone can say that won't result in a title or two or three.
Not saying either approach is correct, just noting that predicting whether it will or won't work isn't possible. To those who want to go for the Tua or Lawrence or such, I understand your reasoning, and that's fine. But the either plan is defensible, and whichever you subscribe to, nobody should ridicule you or insist that you're wrong...