Yeah if Vlad is willing to sign a fair extension, and I get the feeling he is, I think the team should do it. Some sort of Olson like extension could work for both sides.
He's got better fitness this year and that 1 WAR version we saw last year was some sort of special set of nightmarish outcomes where his defense cratered along with his bat. He should be 3+ WAR moving forward with 6 WAR physical tools. Maybe a new FO can unlock some of that potential. Or maybe not. But a 3 WAR-ish guy for 8 years 160 mil (give or take, throw in some opt outs) isn't going to kill the team and they gotta spend the money somewhere.