I think NOH would be a great target with Sheed, if he is going to retire, but I really do not see them giving up West AND a pick just for Davis and some salary relief. I think they could consider West for Davis and Sheed, although that still might be a bit steep.
Remember, West is probably the best contract they have on their team. He is a very productive player, and is paid reasonably.
More likely, they would float the pick, or Collison out there to get rid of someone like Posey or Okafor.
What could be interesting would be whether Danny would trade Sheed for Posey and either the pick or Collison. It would be a real commitment salarywise, but a deal like that would put them in good position to make another run next year, if they can resign Ray.