I think it all revolves around what Danny sees as the larger picture. He can't possibly think that Kawhi is a real option, even if he does make an offer sheet. The Spurs will resign him for sure.
If Danny thinks that there is a real chance to be in a position to play meaningful basketball games (and I don't count probable 8th seed slaughter as really meaningful, I'm talking about top-3 seed with a chance at the Finals) in the next 3 years, and sees a probable hole developing at the 3, I could see why he would do it.
But if he sees different way to fill that hole, or doesn't think there is a real concern there at all, he'll pass, or make a lower offer.