It's not really shot down yet. Owners agreed to take it out, if players were willing to lower their cut of Basketball related income substantially (to a number players will never agree to). This is just the owners trying to make it look like they are willing to make concessions, in a PR fight. However, until they figure out the breakdown of basketball related income all of that stuff is still very much on the table.
Once they figure out the percentages, then they will work out those minor details, such as guaranteed contracts.
BTW, there is still a middle-ground, like the NHL found, where longterm contracts don't necessarily kill a team's cap, because there will be ways to get them off the cap, while the player still gets paid (although ussually over an extended number of years).