It is both possible, and advisable, to all teams involved to make this trade. I'm sorry to the young Pistons 2nd-rounders; you must be dropped to make way for a brighter future:
Not to be the insane trade-post guy, but I think this could happen and show some vision on Joe's part.
It would put the Knicks fully in keep-winning-now mode and get them under the luxury tax next year (which is impossible if they keep the soon-to-be-locker-team-killer Amare).
It would get GS under the luxury tax THIS year, allowing them to get back into the revenue share pool while providing them a big risk/reward opportunity if they can get even a portion of each season of a healthy Amare -- all for a first-round pick when it's all said and done.
And it gives OKC a rare chance at something special. This deal keeps the Thunder just under the luxury tax threshold and also gives them maximum cap flexibility for next year, without hurting their core. What makes this so important? They will be able to offer Kevin Martin a deal to re-sign above the veteran's minimum. If they are successful this year, he may take it. They would also receive the pick from Golden State to add to their draft-pick war chest.
The biggest thing for the Pistons? This trade gives them a controllable future. Yes, it locks them into some deals for the next 2-3 years, but their all pretty minor. The important pieces, of course, are Lamb and PJIII. It's a gamble with house money; you have those expiring contracts to get something for them. If the rookies don't pan out, you haven't lost anything. If they become the studs their talent suggests, however, you have a very complete, well-balanced (for once), talent-laden squad for a number of years to come. Hello Thunder East.