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I definitely think we need a TE who can take over the passing game when needed...a Dallas Clark or Jason Witten type who can reliably carry the offense when/if Moss and Wes are taken out of the game. I go back and forth whether that's Gresham, whom I think is the best all-around TE to come out in a couple of years, and is probably a much better blocker (Witten), or the just-declared Aaron Hernandez, who might not run a great 40 time, but can seem to get open at will and play out in space (Clark).
Watson is gone, Baker's not really a receiving threat, and it wouldn't surprise me to see Belichick spend a first rounder on either one of them if he doesn't like any of the DEs or LBs that are available when he's on the clock.
TEs also play all three downs (good ones) and are solid redzone targets. Gresham looked great last year, I would be ok with this. But I would also be ok if the just picked a 4th rounder or JAG FA. TE is a position (like RB) that unless you are an elite talent you are just average, no point over paying.