I'm definitely in the minority here, but I can see the reasoning behind offering Powell something.
Cynics would suggest that his recent up-turn in form is due to his contract running out; a more charitable explanation might be that Curle has finally started playing him in his best position: as a forward down the middle.
His composed finishing, pace and strength on the ball mean that he has decent attributes for a striker at this level. His inconsistent crossing and lack of capacity to track back are less of an issue if he's played down the middle. He's had a decent return in terms of goals and assists in recent weeks and I could see him having an impact next year if used correctly.
Time will tell.
You're only in the minority on here...I agree with you and have been saying it for some time...