I bet the conversation went something like this:
'I want a shot at AS for the belt'
'Not gonna happen until you beat Marquardt and after the Vitor fight'
'So you want me to keep beating your pretty boys?'
'Kind of the gameplan'
'Fine, then give me $1M and I'll do it'
The reality is that Hendo is similiar to Couture in the fact that they are both thinking about the road ahead, do they want to coach full time, just retire, or what. At this point they don't want to just fight any Joe Blow, they want legit competition, and if you are going to give them fodder then they know they are just being used for their name and they want a paycheck for it. Hendo against Bisping was a joke, you have an olympian and world wide known MMA fighter against a TUF fighter who had to drop a weight class just to be able to compete on an average level. They sold that fight on Hendo's name and on a 'rivalry'.
Does Hendo deserve a $1M contract? No, but if they aren't going to give him interesting fights that he wants and just want to use his name to sell PPV's then yes, he does deserve the cash.
For the record, I am not saying Hendo is the most popular fighter, or anything like that. All I am stating is right now the UFC seems to be trying to build other fighers on his name, if so then he deserves a bigger paycheck because they are not giving him the chance to build his name, or redeem his losses.