The Orioles made a big mistake by signing Chris Davis to an expensive contract, but that money is gone and they will never recover it again (unless by some miracle he willingly retires). The Orioles hurt themselves by playing him because they can yield higher wins above replacement (WAR) using a bench player.
Higher WAR means the chances of winning increases and the higher wins means higher ratings, attendance and revenue. Just because the Chris Davis contract was made in error doesn’t mean that fans have to keep reliving that mistake game after game. He will do well as the highest paid player in AAA, and the Orioles will financially and morally be better off for it.