Briggs, I think your comments on Livingston might make him a quality backup plan, but I think we differ on the quality of players we want for our money. I think that there is a big difference between the top 3 (maybe 5 or 6) free agents and everyone else. If you have the chance to get some combination of James, Wade and Bosh, I think you have to do it... even if it means giving up Lee. I think the difference in skill between guys like Livingston who are playing for contracts and veterans who are taking less money to win a championship is marginal at best, so that the best use for unused salary cap is the veterans. To entice those guys to play anywhere, I think they need to beleive the team is a contender. We can guess whether a team with a core of Livingston, Chandler, Gallo, Lee will be a contender. You could even add another max player to that core and have a very competitive team.
I personally would try and get the best two players available (whether free agents, tradeable players, etc...) and let everything else work itself out. You can sign guys like Barron to a minimum contract even if you are over the cap. And a buyout of Curry will clear at least million or two.
I just think to compete with teams like LA, Dallas and Orlando you need to have at least 1 superstar and likely two more all stars (and then a couple on the fringe all-stars. I think Lee is fun, but he is a fringe all-star. I question whether he makes the all star team playing PF rather than C.