Heh. He's didn't get a QO from anyone, even with teams rumored to have had interest. (Jazz, Nets,Wolves)
His agent said returning to play in Europe was a possibility. I think his agent had a minimum target or it simply wasn't worth it for Davis to come back.
Also, I think the Spurs had that same exact contract for Kyle for minutes as a backup 3/4. It was already in their budget. Since Davis is taking the role, they were fair in offering him the same contract.
Nickeling/diming him when they already had projected 4/20 in their budget for that role is really petty. Think Davis would be insulted and not come back.