Orlando is in a tough spot. They're stuck in a loop of taking gambles on high upside players who struggle long enough to eat up their rookie contract and then start to turn it around just as they get expensive (or just after Orlando trades them for basically nothing). They've got Cole Anthony, Jalen Suggs, and Markelle Fultz as potential lead guards. If they draft Holmgren they'd have Wendell Carter, Mo Bamba, and Chet Holmgren at C. They've got the Wagners and Jonathan Isaac (if he ever gets healthy) as their forwards which means they don't really have a place for Banchero or Smith either without sitting somebody. Will they ever develop an identity or are they going to spend another decade developing talent for other teams? How can you have 6 top 10 picks on your team and win 22 games?
I think if I were Orlando's GM I'd try and trade the #1 pick and possibly one or two of those other top prospects who haven't quite panned out for somebody I could build around. Maybe Brooklyn wants out of the Ben Simmons game already. Maybe go after Ayton in a sign and trade (obviously they would have to wait until 30 days after their draft pick signs a contract so that's a little tricky). Sam Presti loves draft picks, maybe he'd trade Shai to lock up both of the top picks in this draft. I don't think bringing in another 19 year old and initiating them into that culture of losing is likely to change much for them.
Markelle Fultz (1st overall by PHI)
Mo Wagner (25th overall by LAL)
Wendell Carter Jr (7th overall by CHI)
Jonathan Isaac (6th overall by ORL)
Mo Bamba (6th overall by ORL)
RJ Hampton (24th overall by MIL)
Cole Anthony (15th overall by ORL)
Chuma Okeke (16th overall by ORL)
Jalen Suggs (5th overall by ORL)
Franz Wagner (8th overall by ORL)
The Magic have 10 former 1st round picks from the last 5 drafts and seven of them were lottery picks. And if they keep their pick they are going to add a #1 overall pick to that list.
But other than Franz Wagner, I don't think any of them has shown without a doubt that they deserve a starting role, and a few haven't shown conclusively to be NBA caliber players. So IF Orlando stays at #1 I don't think they can afford to care how the player they pick fits with what they have. They are likely moving on from Bamba regardless, none of Suggs, Fultz, or Anthony should have a clearly defined role going into next season, and Isaac hasn't shown he can stay healthy, though he's shown a lot of flashes when he was.
They've got a lot more questions than answers right now. And the only reason I'd say they shouldn't trade the pick is that they don't have a core to build around, so they need to finally hit on somebody. The counter argument is simply, "but do you trust them to get it right this time?"