I just don't think Danny is looking for anything that dramatic.
Also, I think the chances of JO retiring are VERY slim. He is still relatively young, and has been concentrating hard on getting better for the playoffs this year. I think he is going to only be able to play limited games the rest of his career, but I don't think he is ready to walk away yet.
Also, I think Delonte is a better backup PG than Udrih (and MUCH cheaper), and while Garcia is a decent player, he has had trouble staying on the court the last few years, making him a very risky guy to give up possible cap space for in 2012.
I really think Danny is looking for a much more minor deal that brings in someone on a short deal, and doesn't subtract so much from the current team.