I think any pick outside of the top 4 puts Danny in a position to have to make some tough decisions. I think at 5 the pick has to be Smart (assuming exum goes 4). This pick sets in place a few possible situations.
1. Draft Smart, trade him to Orlando. Assuming they get Embiid, Parker or Wiggins they would then love to land smart to man the back court with Oladipo. Maybe a package of Afflalo, Harkless and a their 2nd first for SMart? This would be the first step in building a solid but not spectacular playoff team. Rondo, Afflalo, Green, Sully and Hopefully a player like Asik would be a solid 3rd team in the east.
2. Draft Smart, Trade him and sully with picks in package for Love. Team would have two stars to build around.
3. Draft Smart, Trade Rondo. Pull in young talent and picks for Rondo and go for longer term rebuild around Smart.
With a top 4 pick I think DA avoids any drastic moves and lets Rondo lead the young core of Sully, AB, Pick and KO as they develop.