Even though hes one of my favorite players, I have to agree. Though Collison is not the answer. I think moving Hill to the starting lineup was a good decision. Collison is kinda sorta terrible.
G-Hill is an awesome player because of his unique skillset. He has a bunch of things he does above average (shooting, ball handling, transition offense, moving without the ball) and one particuarly exceptional trait (his defense on 1s and 2s). The fact that he can fit in with so many lineups makes it natural to run a 3 guard tandem; an incredible asset in the playoffs where teams often have to play a PG, a backup, a SG, and 2 wing backups. He simplifies the rotation while letting you keep your best players on the floor. Combo guard backups are really, really valuable, especially if they don't give up size/speed on either end like Hill. His only major weakness is his court vison/passing, so his best compliment is a team with established ballhandlers like the Spurs or the Heat...
DC as a rookie was putting up CP3 type numbers on the Hornetts team, when CP3 went down.
DC is far and away from terrible. The pacers just basically do everything possible to completely eliminate the value of his position on the court, and are better off starting a combo type guard like hill, because of it. If they had another legitimate SG, they'd be better off starting them.
Hill suited that role much better than DC, but that's more on their terrible system than DC.