I don't know if Arraez has the star power to command an "ace" in a trade, but I think dealing him now makes a lot more sense. They might have done it anyway out of desperation, but now you actually have the long-term middle infield depth to support that move, such that it could actually make the team better, as opposed to shuffling pieces around to give off the appearance of doing something.
I agree with, like, 98% of your post - particularly the part about waiting for the final product. (Case in point, 2021-22 offseason). However, it's not like this outcome was orchestrated by the front office - Correa opted out of a contract (with the Twins), and then was signed by two other teams that significantly outbid us. Those teams then had to essentially back out of those plans, at significant PR costs with their fanbases. So, either they're right to bail on a long-term deal and we'll find out shortly, or they're wrong and the Twins are insanely lucky. Maybe both?
As I said before, I still favor the move given the reduced amount and the shorter terms. The vesting years are nice, but I'm pretty doubtful those are going to ever be desirable with a mid-30's (former?) shortstop who appears likely to have chronic injury issues sometime in the future.