Watson is not getting re-signed because Dorion is good enough of a pro scout to know that Watson is no longer able to perform at the level he used to at his peak here. Because you know.... players age and regress. If there's one thing Dorion has been consistently good at is having the good pro scouting skills to know when to cut a player loose. Turris, Phaneuf, Brassard, Balcers, Dadonov are all players that Dorion managed to dump or got value from before they had a massive regression and had to get bought out or traded as a cap dump soon after we got rid of them.
Also, the idea that an intense competitor like Giroux was coming here "no matter what" is pure delusion. Yes, he obviously favored coming to him hometown, but he certainly wasn't doing it "no matter what". He came here because he felt this team was trending in the right direction and was going to be competitive in the immediate future.