I suspect the DH isn't coming until after the CBA. MLB doesn't want to give the union that for nothing.
I also think the Phillies are just done with Franco. And while he certainly looks good compared to Kingery, or even just compared to the whole offense last year, he still didn't really have that good a season. He had a monster July but was basically a .730 OPS player with a bad OBP the other four months (I'm not including September when he was hurt and especialy awful).
And factoring in defense, is not out of the question that a .700 OPS Kingery > a .700 OPS Franco. ZIPS has Franco doing better than that, with a 1.3 WAR (and Kingery with 0.7). We'll see, but if they sign Machado, keeping Franco on the bench as a RH batter when our 3B, 1B and (presumed) LF are all RH doesn't seem likely.
That they are still kind of stuck with (and stuck on) Kingery as a square peg is a whole other story.