I'd be a little hesitant, but I'd do it.
In Anderson Varejao, you've got a proven defensive big-man who has some offensive ability and is signed to a pretty reasonable contract.
I know it's supposedly a loaded draft (I say that to imply I have limited knowledge of college basketball), but I like the idea of taking the proven commodity. Especially when that proven commodity is roughly seven feet tall.
It cuts into our cap space, sure. But if we don't get Dwight Howard, what are you looking at? Spencer Hawes is sure to command that kind of money, and I'd take Varejao over Hawes 10 times out of 10.
Worst case scenario, you flip him to a contender who needs a big later down on the road and probably take back a (admittedly less valuable) first round pick back.