At the time, it seemed to many a reasonable decision to let him walk; in hindsight, the Blazers should have tried to have re-signed him.
This is particularly true when you consider that he signed with the Suns for just a little less than 2 million dollars. That's pennies for a player with his skills.
Would Fyre have been a long term answer for Portland? Maybe not. But every player signed is not necessarily a long term answer. He sure could have been a nice short term answer.
Did he lack some of the meanness and toughness that you'd like from a big man? Probably. And so does LA. But Frye also had some other great qualities that make up for that. Height and youth definitely can't be taught. And near seven footers with tremendous 3 point range are extremely rare. And being a solid citizen is always a plus in the modern NBA. It pays to have valuable assets regardless if they are long term or not.
The bottom line: if all it would have taken to re-sign Frye was about 2 million dollars, that was a deal the Blazers should have made.
Frye has the choice to become a free agent this summer. If he chooses to take that option, he'll make probably 3 or4 times what he's making now.