I drafted Gagne when the only guys left were Borowski, Jones, Lyon, and Percival. Hindsite is 20/20 as they say, and everyone expected Lyon to lose his job to Pena while Percival I don't believe was generally expected to last too long either. It was a gamble that didn't pay off.
As for MLB management, I really don't understand what makes a GM give closers exhorbitant salaries, seems to me it sticks them into a situation of almost having to use a guy in the 9th even after he's proven to suck - "Well, we're paying him 10 million a year so I don't care if he's given up 10 runs in his last 3 outings, it's all or nothing". Maybe I'm underestimating the "value" of the "closer mentality" but given the short amount of time I've been paying close attention to these things, it seems to me that giving the 9th inning duties to some low cost fireball throwing rookie is a better bet than than paying some broken down has been a couple million to go out and let his entire team down night after night.