I don't know whether these reports can be trusted or not, but it certainly has gotten more interesting:
Sources close to the situation say that Howard will not exercise his early termination option if the Magic are able to acquire Nash.
On one hand, this puts a lot of pressure on Magic to try to get Nash, meaning they will have to offer more. The problem is, they really don't have much to offer. I think if the Suns were to play their cards right, they might be able to get several future first round draft picks in return. However, if Howard stays and they get Nash, those picks will be very low. Magic would have to find another team with some assets to send to Phoenix for this to make sense from the Suns' perspective.
Now let me play devils advocate for a moment. Knowing what it would take for the Magic to aquire Nash, and knowing that Howard wants to play with Nash, and assuming that he is willing to re-up with the Magic if they do get Nash, doesn't it make more sense for Howard to just sign with the Suns in the off-season. If the Suns keep Nash, and the other assets the Suns have, they would be a better team with Howard, than the Magic would be by adding Nash to the mix (and trading away the young talent and picks it would take to get him).
Food for thought. Maybe Nash could still be somewhat of a FA draw.
That's an interesting idea. In theory if Howard really wanted to play with Nash, he could do so in Phoenix. The Suns, with Howard, Nash, Gortat (at PF?) and a FA SG would be better than what the Magic has to offer right now. In fact, I think that would be a stronger team overall, with a head coach that players actually like. Plus Phoenix is a bigger market and just as warm.
However, I don't think it's really about wanting to play with Nash specifically as much as it is about Howard willing to stay in Orlando as long as the team surrounds him with better players. He has said as much in the past. Of course if the Suns could somehow bring Howard to Phoenix next summer, everyone would quickly forget how they were demanding that Nash be traded. It's far-fetched, but so is the idea that trading Nash at the trade deadline would result in a top-3 pick.