It's hard to evaluate this deal without knowing the terms, and as of yet they haven't been disclosed (probably since the deal isn't official just yet). However, my immediate reaction is positive. Kubel does not appear to be headed towards the stardom that was predicted for him when he was an up-and-coming prospect in the farm system. Nonetheless, he is moving towards becoming a very solid big league player who retains the potential to break out and have at least a few special seasons. Last year, Kubel hit .272 with an 806 OPS and 20 homeruns. Those are respectable numbers, and if he can dublicate them over the next few years I'll be perfectly happy with the result (unless we overpaid for him, which we'll find out later).
Of course, the Twins didn't have to buy out Kubel's last arbitration years -- but in so doing they gained cost-certainty and presumably answered the question of whether Kubel remains in the team's plans in light of the "glut" of outfielders on the roster. I like the fact that the Twins are sticking by him. I'm sure I'll have more to say on this topic once the terms become available and there's something to really evaluate. As I said, though, I like the idea of getting cost-certainty on Kubel and of keeping him around to DH and play in the field on occasion. Consider that a conditional thumbs-up while we wait for news on how much was actually spent to keep him around.