At first, I thought that sounded like a pretty cool comment, but the more I think about it, the more it just comes off douche-y to me. I mean, he's a 7-footer with long arms, a decent handle, and a sweet outside stroke; of course he's going to beat anyone in a 1-on-1 game. And on top of that, no one says he's not a good enough player to be in the all-star game; the issue is that he has missed too much of the season to deserve it.
But as to the question asked, no, I don't think Lillard should take him up on it. Getting worked over 1-on-1 by a guy who's 9 inches taller than him isn't going to do him any favors. It sure would be an entertaining lead-in to the game, though. And even if he lost, I'd LOVE to see Dame drive and dunk on Durant just once...