I'm cherry picking this point for space, as yours is directly above, but this was kind of the point I want to make. Leonard is better than Hill. I thought that was likely to be true at the time, but the mapping of NCAA success to College success is not 1:1, and the Spurs were taking on risk that he would develop. That part is being ignored by the people(not you) saying it's a bad trade for Indiana. It's possible that Kawhi develops in the same way in Indiana, but it's still a prospect that they couldn't be certain of.
Also, like you note, George Hill is limited as a PG, and he can't guard all SG's or SF's. What I don't get is that people expect him to be able to do both, being some kind of Chris Paul/Bruce Bowen hybrid who can flawlessly create and guard everyone. That doesn't exist in the non LeBron universe. Those limitations are why he's paid $8m a year, which in the world of a 60m salary cap(That should expend over time) is a pretty small amount to pay for a 3rd/4th best player on a fringe contender.