So what if he got "outplayed"? The plan, supposedly, was to develop Allen. Which means Allen was supposed to be #3 behind Peterman and McCarron regardless of whether or not both of them are trash (they are).
They were signed to be red-shirts in a tank season. And then they decided to bail on that plan immediately and force their rookie QB in.
So the plan was for Allen to start games. It's the only justifiable reason for getting rid of your 2 QB buffer in front of him in the lineup.