I think they should let the court handle this cause anyone can see that they're not negotiating in good faith.
I started a topic on this about a month ago, but the question of "good faith" is an interesting one. I don't think having a bottom line, and not crossing it, is necessarily bad faith.
From what Stern said -- and the union didn't rebut this -- the NBA agreed to 5 out of 6 proposals set forth by the mediator in terms of bridging the gap. The union rejected those. Therefore, it seems like the league was willing to make a good faith move toward the players' position.
In terms of the courts, that's going to take at least a year to sort out (probably much longer), and the resulting anti-trust case would, at least initially, lead to the end of the salary cap, the end of the draft, the end of max (or minimum) contracts, etc. In short, it would be a bad thing for both the league itself (now and in the future) and for the majority of players. I'm not wishing that upon anybody.