I absolutely agree with you Tom 100%. There are many times when college players are totally awesome in college and when they get to the pros they either can't handle the pressure, or they just FLOP. The sad thing is, this happens ALOT with QB's.
As far as Peyton is concerned with the whole contract talk== I like him alot for doing this. He's a team player and he realizes it's not all about him. He doesn't want to go somewhere else because of money issues. He's there for the fans, he's there for the team and most importantly he's there for his family because he doesn't want to move them all around. He's truely a MAN. (Sure wish I could say this about Albert Pujols who I loved watching and he was my #1 player to watch on MY STL CARDINALS! but NO, he sold out and it was all about the money. Pujols WAS like Manning before his departure from STL. But not anymore.)
The best thing for Andrew Luck is to sit and watch Peyton for 5-7 years and LEARN the true role of QB at the next level. Will he be a good QB? I have no doubt... but why chance it. I think the Colts will take Peyton up on this offer for one reason. If they let him go, then Luck flops, they will be the laughing stock of the NFL, the country, and the world! Because I guarantee you one thing, IF Peyton is forced to leave, he WILL rebound and he WILL bounce back with a vengence and make the Colts look absolutely stupid for letting him go.
But you are right also when you say the Colts need to draft Luck. That's a no-brainer. They would be absolutely dumb if they didn't. This could turn out to be a Joe Montana/Steve Young thing... or even better a Brett Favre/Aaron Rogers thing. I think they'll make the right choice.