Briere and Stuart on one-year deals makes a bit more sense. But 3 years for Iggy is boggling.
Iginla isn't mind boggling at all. I say thus for a variety of reasons. It allows MacKinnon and/or O'Reilly to play their natural position of center. Also, when you look at their forward group last year, they only had 2 or 3 that were right handed, namely MacKinnon and Parenteau, which is to say MacKinnon, since PAP was destined to get traded. For much of the season Roy has made it a mantra that the Avs need to get bigger and have more RH balance in their forward corps. Their first draft pick was made with this in mind with Bleackley.
Since the Avs have been drafting with high picks and have made great choices with them, they've had several guys bypass another year in juniors and the AHL to play with the Avs immediately, they've had no one noteworthy populating their prospect pool. MacKinnon, Skog, Duchene, and OReilly have all gone to the NHL in short order, so none of these guys really ever spent time as a prospect since they were impact NHL players right away. Defensemen take longer to develop and the Avs top draft picks from the past few years are what's in the pipeline and also their best prospects. I'm talking about Duncan Siemens, Stefan Elliott, and Chris Bigras. Tyson Barrie finally turned the corner last year. He was in the NHL early, wasn't ready so went back to Lake Erie, and then returned. After he returned, he was a huge asset. He's an excellent skater and has a big, timely shot. I think he had a late game winner against the Blackhawks.
One of the big events in recent memory, regarding talent acquisition, was the S'kirk/Stewart for Johnson trade. For a majority of time since the trade, it was seen as lopsided in the Blues favor. But Johnson has finally come into his own. While he's not an elite top pairing defenseman, he's probably top 15 or 20. Avs fans have been so focused on that trade for so long that many Avs fans want to believe EJ is "the guy". I mention that in relation to Tyson Barrie because, if I'm honest, I'm not so sure Barrie isn't the better player in the future even though he lacks the physicality element EJ has. In the playoffs, the speed of the game changes. Ironically, MacKinnon and Barrie were the least overwhelmed by the speed of the game (ironic because they're both rookies--Razor was 18). Johnson seemed more overwhelmed by the speed of the game than Barrie. So I can see Barrie supplanting EJ at some point if people are being honest.
So what does this have to do with the Avs signings? Check out their salary structure keeping in mind the timeline of the players coming through the pipeline:
http://www.capgeek.com/avalanche/
Their core players are Skog, Duchene, Razor, and possibly O'Reilly (depending on what's in his heart). Barrie might be in there. Also maybe EJ. Iginlas contract kind of nicely dovetails with the lower drafted forwards progressing and also players in the timeline. MacKinnon and Johnson come up before Iginlas contract expires. Then after that, Duchene and Skog come up again.
Iginla makes a lot of sense when you look at progressions and timelines. Progressions and timelines are also why Stastny wasn't offered what St Louis was paying.