Given those objectives, DIRECT on its face does seem to be the far better option - it can do what Ares claims it can do 2-3 years sooner, and for close to half the cost, and more safely. Apparently even NASA's own internal review suggested as much. Unfortunately, while Griffin was right to want to terminate the Shuttle, he seems too wedded to Ares. And Ares has reached the point where it uses virtually no Shuttle systems any longer - which means more cost, longer testing, more uncertainty, and higher risk of cancellation (especially of the big Ares V booster).
Could you design a better system "clean sheet?" Sure. But we have to work within what Congress wants and will go for.
And having said that, ideally Direct would be focused on beyond LEO exploration, while LEO becomes the preserve of commercial space enterprises as soon as possible through award contracts, deregulation, and tax breaks.