First off, the cap hit recapture thing is complete garbage. It's the league's issue that they allowed those contracts, and now GM's following the rules are being penalized for finding loopholes int he league's shoddy system.
Secondly, you're bending numbers so out of proportion that I don't even know how to respond. Just because you average out numbers, and crunch them into different time periods doesn't mean you have the cap hits and salary right. Franzen would never make 7.1 million per year... ever. You can't just bend numbers from different players, because that's assuming every single player with similar production, and every GM in the league are the exact same. They're not. Each team is different too, by the way.
Franzen was signed to his current deal, because at the time, Holland was taking advantage of a loophole in the CBA. The bottom line is, at this very moment, Franzen's production is solid for the amount of cap hit and salary he is taking up. The cap recapture rule is horse s***. Had the league just dealt with this properly, Franzen's hit would be coming off the books, and it'd be a non-issue. It's not Franzen's fault, it's not Holland's fault... it's the NHL's mismanagement and backpedaling.
This. If one wants to see what Franzens cap hit would be on a shorter term, knock off the 1 mil/year seasons at the end (years and salary) then average what's left. Would be 4.61 mil/year cap hit, not 7.1. That's just insane numbers to come up with.