I don't think it's a bad deal. Yes, Armstrong is getting more money then he should, but when you go and get someone in free agency you end up overpaying. Armstrong will do a lot of good things for Toronto. He isn't going to be a top forward, but he will put in good minutes on the third line. As Sean said above, it's not like this deal cripples our cap going forward. In fact, we still have enough to go for Kovalchuk if Burke wanted him and was willing to place Finger in the AHL.
Pittsburgh getting Michalek is good. He is not Gonchar, but he is an underrated puck mover, solid in his own end, and a great shot blocker.