He blew in LeBron's ear. So what? He had a pretty good series, and his coach had him guard LeBron, rather than use Paul George, a player widely considered a top-5 perimeter defender.
1. The Jazz rarely have the opportunity to sign quality/talented free agents at a discount price. The Jazz lack talent, Lance has talent and may be available at a decent (movable) price. If this team is ever going to truly contend again, they'll have to take some risks. I think this is the sort of risk they should be taking.
2. Here's the list of non-point guards who played 1000+ minutes and averaged at least 0.4 assists for every field goal attempt this past season:
Joakim Noah
Nic Batum
Tyreke Evans
Lance Stephenson
Josh McRoberts
Manu Ginobili
Andre Iguodala
Gerald Wallace
Nick Collison
Dude's not a chucker. Even on an offensively challenged team, he was fairly selective.
It was more than just blowing in the guys ear. He has gotten in fights with teammates and done other things. Once a knucklehead always a knucklehead. He doesn't chuck all the time but there were several times where he just started going one on one completely ignoring his teammates.