My ideal would definitely be to parlay Odom into some prospects/draft picks (like, say, a deadline deal for a contract expiring in 2010, a pick, and a good young prospect), but you know how this organization is about making the playoffs. If we were to do an offseason deal for Odom it would probably put the Kings in contention for a playoff spot, and then of course the organization wouldn't want to take another step back by trading him for more inexperienced youth.
Not sure it would be the worst thing in the world to get back into the playoffs next year and keep retooling for 2010 (the difference between an 8th seed and a late lotto pick really isn't that big). Worst case scenario Odom's salary expires and we get the cap space.
But we all know how this organization operates, and winning however many games possible comes before making the correct rebuilding move.