I wouldn't be too quick to write off Kelly. His experience and leadership is vital (and he has quality-Scotland International Liam Kelly, as Rangers TV put it!). I'd expect it to be more like the 500-700k range of the fees mentioned for Sheaf, but even that is not extorionate for Championship level and seems about right for a good L1 player, unproven in the Championship with some weaknesses but plenty of potential to improve at the right team (which we certainly are-we'd really suit his game I think).
Walsh blossomed with Kelly alongside him. We need to look it at more as a "2 from 3" rotational situation with Kelly, Hamer and Sheaf (if we do sign him, or someone else if we don't bring him in). There were times when we needed to rest Kelly last season when he was exhausted but there was simply nobody else near his quality in that position: he was too essential. That would get exposed at this higher level, but this would right that. We need to remember that Hamer is young, adapting to a new country and also won't play every minute of every game, either, so we need quality in depth. With these three and one of Eccles (if not on loan)/Pask/Shipley/Allen as the 4th choice option DMC rather than 3rd, I'd be much happier.
There's also an element of succession planning here which is great to see: the management team really know how to build a squad and are adapting to doing it a third time at a third different level!