So, here's ultimately what we're arguing about, based on what I've been able to understand from other sources/threads:
Ryan Miller, one of the best US born goaltenders of all-time and no real slouch as a pro in general (14th all-time in Wins, Olympian, Vezina winner) is going to be involved with the team's goaltending and development. That... doesn't seem inappropriate for a pro who wants to keep working in the game. He's always stuck me as a pretty tuned in, smart, articulate sort of guy so it's not like he has no insight to provide or ways to communicate with the players he'll work with, and of all player-to-coach moves I think goaltending is isolated enough to be the safest of them. Like I said, Kolzig hasn't really let us down a whole lot in his role, has he?
The other real name of note, Vanek, is only doing scouting in Minnesota, where he lives and is a big part of the hockey scene since apparently his kid plays high school hockey there. That's... about as much as that is. "Hey, since you're out there watching and doing this anyway, you want to keep your ear to the ground on some of these kids?". And unlike hiring someone to do that in, I don't know, Florida or Texas or whatever... Minnesota high school hockey is a reasonable avenue to the pro game.
Here's the other thing I found interesting: that particular group of Buffalo Sabres has a pretty insane amount of people finding hockey jobs. Guys from the 2007-ish roster who are still in the game include 3 NHL GM's in Briere, Drury, and Grier and a few other guys coaching various levels (McKee, Conklin, Hecht, Paetsch, Lydman, and one or two others in team/national front office roles).
I wasn't in the room so I don't know, but maybe that was a smart group of guys. Would explain why their game was pretty ahead of its time coming out of the lockout and the team was a powerhouse, or why they'd trust somebody they spent that much time with to understand how they think the game... is that still nepotism? Maybe, I guess, if it wasn't an open hiring process, but it's also not like there's no merit to the hires and the roles don't overlap. If you do analytics, you're in the analytics department. Nobody's sending you on the road to scout assignments.... No reason not to have both. Scouting is just gathering data that apparently analytic folks don't care about or value, so let the meatheads do it.