Is this a stupid trade? Probably.
However, if you think that Palmer can be your guy for 5 and play at an elite level then you probably have to make the trade. The Raiders have been 1 dimensional relying on their running game. Having a QB who can potentially play at an elite level not only opens up their passing game but keeps defenses honest.
What were the other options? McNabb? LOL. Orton? Might have been a better/cheaper option.
It all comes down to if Palmer can play to his potential or not in Oakland. If the answer ends up being yes then the trade is worth it. If no, then the trade was one of the biggest trade rapes of all time.
This trade is going to either be highly successful or a disaster. It won't be any middle ground.
Anyways, any draft pick can be a bust. JaMarcus Russell, Darrius Heyward-Bey, Kentwan Balmer, Brady Quinn, Ted Ginn, Jr., Knowshon Moreno, C. J. Spiller, Anthony Gonzalez, and Aaron Curry are all flat out busts since 2007 that I can think of off the top of my head. There are probably more.