Pau Gasol is a top 15 player in this league. Generally considered a top 5 big man. Is only 30 years old and could easily have 4-5 more years at an All-NBA level.
He is a hugely valuable asset to any team that wants to win in the immediate + short term future.
Orlando isn't going to value a top 15 player towards the end of his prime as much as other teams in the league. The Arenas and Turkoglu deals have crippled their ability to contend for the next few years even with a top 5 player in Dwight.
Pau would be in his mid-30s by the time they cleared the Turkoglu and Arenas salaries off the books.
If the Magic trade Dwight, they need to acquire a younger talent whose value won't depreciate during the dog years ahead and/or unload some of their bad contracts with him
This is the common viewpoint for teams to take when they in as poor a position as Orlando ... when they lose a superstar talent ... but I am not sure this is what Orlando is thinking.
I don't think Otis Smith realizes how poor a position his club is in. I also think he over-values the players he has. Plus I think he desperately wants to keep Orlando in the playoffs, a relevant power, even if Dwight Howard leaves.
I see nothing from Orlando that gives me the sense they are committed to rebuilding should Dwight Howard leave. I think they'll trade him for the best talent they can get and try to win with that guy(s) if they receive a good enough package.
And I think Pau Gasol or Amare Stoudemire is a good enough package to convince them to do so ... especially if LA included Lamar Odom in addition to Pau. I think they'll try to win with that new-look Orlando Magic team.