He wasn't as bad as his numbers suggested in Buffalo last year, and he's still in pretty good shape.
The thing he can't do anymore is make a mediocre quarterback look good. He can still make all the catches, but he's past the point of being able to build up a guy who isn't already good (like a Trent Edwards).
He needs to go someplace with a veteran QB who can make the most out of the skills T.O. does still have.
Pretty much what Matt said. He's not the dominant #1 he once was but he's still plenty good enough to start and a very good red zone threat. He'd be a good fit in Washington (assuming he can stop being a tool, which might be quite a large assumption).
T.O might be in shape, but he's still T.O. The skins are NOT winning the superbowl this year,and if you sign T.0 you aren't allowing a young reciever to develop and gain experience. I know that Dan Snyder hasn't made the best decisions in who he brings in, but paying x amount of millions to a 36 year old wide reciever just to have a 9-7 season might be his worst move yet.