In a vacuum, this is an outstanding signing for the Dodgers. Had Andruw Jones had a season closer to his 2006 or 2005 performances, he would have been in line for a five- or six-year deal in the $100 million range.
Jones is still one of the best defensive center fielders in the game, and up until 2007 -- when he allegedly played with a hyper-extended elbow -- was good for an OBP near .350 and 30-40 homers every year. He's also about to turn 31, so he's still in or close to his prime as a hitter. And the Dodgers get the advantage of two of his peak or near-peak years without having to sign him into his mid- or late 30s.
The Dodgers, however, do not play in a vacuum. On the one hand, this could just be an acknowledgement that the Juan Pierre contract was one of the worst of our time, so the Dodgers are treating it as a sunk deal, which they should do. (This would make them the second team to do this with a bad center fielder signing from last winter, on the heels of the Angels signing Torii Hunter two weeks ago after getting Gary Matthews Jr. the year before.)
On the other hand, this could mean the Dodgers intend to deal either Matt Kemp or Andre Ethier in a deal for one of the top starting pitchers on the market, such as Erik Bedard. Trading either of those guys would hurt the Dodgers' offense -- any scheme that puts Pierre in an everyday role hurts their offense almost as much as it hurts my eyes -- but trading Kemp for anything less than a Bedard or a Johan Santana will come back to haunt the Dodgers for years.
Or, should they keep Kemp but send him to Triple-A or relegate him to part-time duty, they'll retard his development, since Kemp is still raw as a baseball player and needs reps at the big-league level to continue to work in areas like pitch recognition and reading flyballs off the bat. They could make out better if they trade Ethier, who is just a fringe-average corner outfielder and unlikely to produce at a higher level than this, but that still hurts their club by giving Pierre 600 at-bats that should go to someone who can hit.