I love this deal for all teams involved.
LA save a ton of cash, get a nice trade exception, and add some much needed depth up front...and all it cost them was a draft pick they likely wouldn't have wanted anyways. This years draft could be terrible if there is a threat of a lockout, and that pick would be in the bottom 5 of the first round, which are generally even less valuable than the ones at the top of the first round (I hope you are reading this Danny!).
NJ gets a couple draft picks, and another expiring contract to include in a major deal for someone like Carmelo. They are collecting a ton of assets right now, and are in a great position to make a big splash.
And Houston gets by far the best player in the trade. Williams may be a bit of a nucklehead, but he is a heck of a talent, and could thrive in Adelman's system, and with the mentorship of someone like Battier to keep him in line.