Disagree.
His production was down, yes, he was hurt. Harbaugh praised him for playing hurt. It was also well know their OL stunk Ray's last year. The backup, Bernard Pierce, who got a lot of carries also saw his production go way down. The next year when the ravens straightened out their OL, Pierce's production went back up.
As far as $870,000 that is nothing for an NFL team to fit under their cap. Yes, if someone gets hurt at this point, and a team needs a rb, there are better bargains. But we all know those players out there now are not in all likelihood going to produce like Ray might be capable of.
I don't know if he is done or not. I suspect he might have a couple years left. He is definitely worth a chance for $870,000.
I think the real reason he isn't getting a chance is because has become the national poster child for domestic violence because there is a video of the abuse. His case will continue to be in the news, its mentioned all the time, and teams are afraid of the probable sponsor backlash.