This three-way works:
Atlanta trades Mike Bibby, Marvin Williams and Josh Smith, receives Carmelo Anthony and Chauncy Billups
Detroit trades Richard Hamilton and Charlie Villanueva, receives J.R. Smith and Kenyon Martin
Denver trades Anthony, Billups, Martin, and J.R. Smith, receives Bibby, Hamilton, Josh Smith, Villanueva, and Williams.
http://games.espn.go.com/nba/tradeMachine?tradeId=24s562nAt least Denver gets a very good player (Josh Smith), and two pretty good players (Hamilton and Villanueva) for their stars. That will keep them somewhat competitive rather than just blowing it up, and they will save $10M in salary this year - I guess that's $20M with the tax.