How much do you want Dwight to be a Knick?
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The Knicks have to give up more, maybe another draft pick or money. Even without having a draft pick in the near future, Lin has potential and is a draft pick. The Knicks will still struggle but the defensive prowess of Dwight and Ty will be tough. The Knicks will still have Baron and Duhon is familiar with the system.
Alley oop offense anyone
As for the Magics. Its rebuilding, Amare, and improving Lin. Reminder the Magics will get more than STAT and Lin. They have a good coach and have a chance to draw players in free agency.