I don't think anyone can justify spending $1million/year on a single player if they are seriously considering having a tilt at the flag. As the cliché runs Football is a team game and given a situation where such a vast proportion of the cap is spent on one player it will obviously adversely affect the ability to gather a team that can challenge in September. West Coast are lucky enough to be in the position where they can, essentially, have Judd at 'cut price' unless another team is willing to severely dent their chances for a premiership.
My personal views on Judd are that he is an absolute superstar. Obviously his performance at the moment is lacking comparative to his efforts earlier in the season and the years preceding. However, to argue that he is done and dusted, from my point of view seems to be a huge oversight. This view relies on an assumption that West Coast are playing him while he is not fully fit as he is such a valuable player that a detrimental physical condition will still see him selected. With this assumption in mind, a good rest over the break with a somewhat solid pre-season could invariably see him close to the form that he has become known for. To dismiss the possibility, or to even play it down is, in my opinion, selling Judd short. Although I'm relatively inexperienced compared to many on this forum in terms of judging player talent, in the modern game to have a midfielder of some 190cm and with the natural physical ability of Judd is something that can't be understated. Not only is he physically impressive, his innate ability to read the play and general 'game-smarts' suggest someone who has had years more experience at AFL level.
To put it simply, I believe there's quite a good likelihood that by mid-season next year Judd will be someone near back to his best, and at that level he is in my opinion streets above the rest of the competition. However unless a whole team is willing to take a pay-cut it probably isn't feasible to be placing an exorbitant proportion of the cap on one player and expect to challenge for the flag.
PS. Because I couldn't be bothered reading anyone else's posts this has quite probably already been said but I thought I'd jot it down anyway.