Cleveland's got so many bad contracts, it's tough. Not sure how they can shed all of them. Three more years of Mo Williams and Boobie Gibson, four more years of Varejao. Varejao's probably their second-best player, which is pretty frightening.
What they ought to do is trade Varejao, but make any trade partner also absorb Boobie Gibson. If Cleveland called up Danny and offered AV and Boobie for 'Sheed's contract and Big Game Davis, Danny would have to think long and hard about that. SOME contending team would bite. They could clean two of their bad contracts out pretty easily, which would just leave Mo Williams and Antwan Jamison in the next two years, and Mo in 2013 (assuming he picks up that last plater option).
So, let the team suck for two years. Get some lottery picks, buy a first rounder or two next year, give Hickson the starting role and see if he's really a building block or not... and in two years, you can either be a player in free agency or pick up some guys in trades.
The alternative - plug in the hole as SF with the MLE, keep AV, don't make any trades.... I'm not sure this team's core, even getting lucky with an MLE acquisition is much more than 35 wins. Probably closer to 30. Is the remaining talent level in Cleveland better than Indiana, as an example?
Make some trades, suck for a couple of years, rebuild and come back in 2012. Or, plug along somewhere south of mediocrity.