The league he is playing in isn't very good. It's the third highest ranked league in Lithuania. Basketball in Europe is similar to soccer in Europe, there are a series of leagues that relegate and promote.
The top league in Lithuania (LKL) relegates to the second best league in Lithunia (NKL) which relegates to the third best league in Lithuania (RKL) which is the league that his team plays. This league is full of 17/18 year olds. There are no former NBA players/American college players in the RKL.
For some perspective, Mutaf currently plays in the top league in Spain but when he first left Minnesota, he played in the third highest ranked league in Spain. However, that league is much stronger than its Lithuanian counterpart. It's mostly to do with $$, the Spanish lower leagues are genuine minor leagues - actual professional basketball players.
All of that said, I do agree with your post. I like his potential with us and even if he doesn't pan out, it's exactly what I had been crying about for months. There is no excuse to not at least fill out your scholarships and see where things land. I'd rather take risks than eat scholarships. He is a 6'7" guy who is pretty athletic and can at least shoot a little bit. He looks raw but he looks like he could provide some depth at a position of desperate need. Plus, he is kind of a fun prospect to root for.