Gallon isn't the solution; however, I think it's naive to think we absolutely must keep Baby. I also think it's naive to think we should definitely trade him.
On one hand, the Baby supporters are right, but I don't think it's because of his talent. Quite frankly, if KG, Perk, and both O'Neals are healthy in the playoffs, Baby probably won't play at all. The question becomes IF they are all healthy at the same time.
HOWEVER, on the other hand, we're also weak at the 3 spot, and will likely have to go through LeBron and Miami to win it all. Even if Daniels pans out, they're equally vulnerable at the 3 spot where they're an injury away from having to rely on Delonte West or Von Wafer to guard small forwards nearly half a foot taller than them.
Quite frankly if I was faced with a situation where I'd have to rely on Semeh Erden for 10-15 mpg at the 5 spot (if Baby was traded and one of our big men went down) or had to rely on West/Wafer to play 10-15 mpg backing up the 3, I think I'd go with option 1.
However, I'd wait and see on Daniels and Perk. The health of each could really play a big role in any Baby trade.
Quite frankly, I wouldn't mind seeing something like a Nate and Baby for Shane Battier (or if you think we can get more for them, insert your large, defensive 3 of choice). You then swing West to the 1 and Daniels to the 2, which gives us better size and better defense. Even better, it gives us 3 players (Pierce, Battier, and Daniels) who can guard small forwards if need be. As for Baby's spot, Perk will be back eventually, and we could get by with Erden for a month of the regular season. Additionally, in case of an injury at the 4/5, Battier could play some 4 in a Posey-like role.