I'd do it. Palmer's injury was pretty bad, even though it's looking like he will be able to make a full recovery, who knows how much it will affect him mentally. On the other hand Peyton should continue to put up monster numbers for the next few years.
That said I also think Sjax has a far greater upside than Edge, I think Edge is in the twilight now and I highly doubt that he will be a Colt next year. I believe the Colts will dump him to a team like the Cardinals for draft picks.
Looks like Win Win...Take it and Run.