I think the Steelers will match any offer rather than take a draft pick, but they wanted to try and secure Willie's services for one year on the cheap. It may not work, only time will tell.
The Steelers really don't have anyone waiting in the wings. I guess Essex and Foster by default, unless, Hills has shown more than the Steelers have let on and kept him hidden on the practice squad to get reps. I doubt it, but it is a possibility.