Yeah. Even if they started Diaw, they'd literally split minutes in the regular season anyway, so it wouldn't really matter. And because he's young and wouldn't be one of their three most important bigs, he'd probably end up eating up the 2nd most total minutes amongst bigs in the regular season, the way Belinelli did amongst the wings.
I expect him to re-sign, but if the Spurs come calling and offer him that role, at the MLE, they'd probably have a near 50% chance. They could also sell him on them not having a long term answer at PF (not that he'd be it, obviously; but he wouldn't know that). The Hornets have two recent lottery picks to contend with.