Well, I have to admit that my initial reaction to the idea of retiring Peja's number is that he doesn't make the cut. But rather than just say "no" and be done with it, I figured why not take a look at the case FOR Peja.
First let me ask: Are we retiring too many numbers? For a franchise with only one championship (and that back in 1951), is 9 retired numbers too many? We've been in the league since the inception (before it was even called the NBA) - 1948. In those 66 years we've retired one number per 7.3 years. If you look at franchises who have either 0 or 1 championship, we're kind of smack dab in the middle. The Trailblazers (1 every 4.4 years), Jazz (5), Suns (5.1), Cavaliers (6.3), Bucks (6.6), and Nets (6.7) have retired numbers at a quicker pace than we have, while the Sonics/Thunder (7.8), Mavericks (11.3), Pacers (11.75), Wizards (13.25), Hawks (22), and Magic (0 since 1989) have retired fewer. We rank 7th out of 13 in pace of retiring numbers amongst these "perennial noncontenders", so it' not like we're going nutty with retiring numbers. There's room for another retired number, if it's warranted.
So what does Peja have going for him? First off, he's #6 all time in points scored for our franchise, and is the highest Kings scorer to NOT have his number retired. He's #1 in three-pointers made, safely ahead of Richmond and more than doubling Kevin Martin. He's #2 all-time in 3-point percentage, only 0.006 behind Richmond. He's #8 all-time in games played (though only three of the seven above him are retired) and #7 in minutes played (4 of the 6 ahead of him are retired). He's #1 all-time in free throw percentage by a large margin, though he comes in only 12th all time in FTM. And for as bad of a defender as he is sometimes reputed to be, he is 8th all-time in steals.
So, looking at that, I'd say that he stacks up pretty well against the "bottom tier" of players whose numbers we have retired. He's certainly not a no-brainer, but he's actually got a decent argument. He was one of the very best SFs in the league for about a five-year stretch, and his arrival coincided with a team resurgence to easily the best our franchise has been since the early '50s, though he's certainly not the only factor. It could go either way. He's about as fringe of a player that could have his number retired, but it's not a bad call if it happens, in my opinion.