I agree, but I think the ship had sailed on any big extension because there had been no talks about a framework. This is at least a gesture of good faith on the Pirates behalf, but it really means nothing because it's just solidifying arbitration numbers. A 3 year deal would do the same thing.
I think the most optimistic take is that this lays the foundation to have actual talks over the winter. If Reynolds turns in a similar type of performance, then we'll see how serious the Pirates are. I would put the odds pretty slim, like 90/10 that he's traded eventually, but I do think it's worth noting that Cherington's front office has had a penchant for having news come out of nowhere seemingly. Even with Hayes, it was floated that extension talks took place, but it was basically a surprise. Most of the trades haven't really had rumors ahead of them, even when we knew the players themselves were going to be traded, etc.
So best case scenario, the front office wanted another year of Reynolds performing at a 5-WAR type pace before committing to him long-term. I don't think that's totally crazy, actually, though if Reynolds ends up having a slight step back year, like 3.5 WAR or something, then I wonder if not having any talks at all this offseason will have a bad effect on things.