What you'd end up with is more parity in the league and more teams with a chance to contend for a title.
What you'd probably end up with is most of the league looking like the non-Indiana, non-Miami Eastern Conference.
Not really. Some of the teams would have players like LeBron or Durant, some of the teams would be solid all-around with a star or two, say something like Rondo/(high draft pick)/Green/Sully/Asik, many teams would still be poor. It wouldn't be a league full of .500 teams, it would be a league with few if any super-teams so more than 1 team in the east would have a decent chance at getting past the Heat.
That is true.
And even if you did have a lot of teams that looked like, say, a Atlanta Hawks with a healthy Al Horford... I think that would be awesome for the majority of NBA fans if teams like that could be competitive with the other non-super teams of this hypothetical NBA.