You don't make a guy of Faneca's stature compete with a guy who was a 5th rounder a year ago. We've had enough distractions so far this season. Forcing Faneca to compete for his job would have created another one (You seriously think he would have quietly sat on the bench?). The team needed to move on, and did. They ate his salary and allowed the younger player to take over the spot so he can be there long term.
They made the only move they could without creating another problem.