My take on this is Orlando would prefer Bynum over what Houston has to offer. The only hold-up is whether Orlando can get Bynum to agree to an extension. If Bynum refuses, Orlando will probably (eventually) do the Houston deal.
Houston has a real chance to help make this work with a future first, maybe 2, and Kevin Martin's expiring contract.
http://espn.go.com/nba/tradeMachine?tradeId=6t8m72n All the guys under contract that make sense, rights to Royce White, future first, taking back Glen Davis.
Seems like an 'everybody wins' situation, but it comes back to one irrefutable fact:
Why would Houston help LA? They can just do nothing, hope Bynum refuses to sign an extension, and trade talks fall apart.
They can still get Howard, and have the most leverage of anyone because it can get done before the beginning of the season, whereas the Nets have to wait until Jan to trade Brook Lopez, a time in which all sorts of things can happen to screw that up.