I think the gun situation has made Gilbert untradeable.

I don't see it happening at all.  Jamison certainly has good trade value, but the black hole that is Arenas completely negates anything like this happening.  The Rockets would be screwed for years to come. 

I think at this point Morey has to assume Yao's career is done and McGrady was a mistake, and as such should build around the good things that he has.  They do surprisingly well b/c they play like a team (shhh, don't let Stern hear this), and can play some great perimeter defense.  If I were Morey I'd either try to trade McGrady with another player and picks for a good power forward, or I'd let his contract expire and go after Chris Bosh.  That team would be really well with Chris Bosh and a cheap shot-blocking center.