If a team like Boston or the Lakers isn't willing to include some of the high level prospects (or draft picks in Boston's case), I really don't know why the Pacers wouldn't just trade with the Cavs and make the Cavs take on some of the other longer contracts. I mean Indiana could trade George, Ellis, and Jefferson for Love, Frye, and Jefferson (Felder and Tavares could be included as well for some "prospects"). Frye and Jefferson might very well retire, which saves the Pacers even more money and they still have Love whom they could move for more savings and/or prospects. The Cavs get George and some solid bench depth in Ellis and Jefferson, while the Pacers just go into full on tank mode and try to build around Turner.
A few problems. The Pacers are not interested in Love and it seems like he doesn't have tons of interest around the league for whatever reason. So just assuming they can unload him when they have been unable to get a 3rd team into the mix seems like a pretty unlikely move.
For the Cavs Eliis and Jefferson are bad contracts at this point. Ellis has had his scoring decline for 4 straight seasons and was a complete non factor int he post season. Paying him 11 million next year on a team in luxury cap hell would be pretty tough to swallow. Jefferson is completely broken and down and cooked and his seen his mpg decline from 30 to 23 to 14 the last 3 seasons. At best his defense was average, but now he is so slow it is horrible and offsets the low post scoring he can provide. So the Cavs are taking on these two vets that don't help their team and further bloat their books while weakening the frontcourt in the hopes that George is a better 3rd star than Love? That seems like change just for the sake of change that may not even make them a better team.
The Cavs obviously believe George is better than Love or they wouldn't have been trying to trade Love for George (I also agree with that sentiment, but I understand why people would prefer Love on that team). Ellis and Jefferson are better than Frye and Jefferson (especially if they both retire) and thus that would also be an improvement. Obviously that is a heavy tax load, but if the Cavs really believe George is better than Love, then that seems like a move that would make sense for them, as really Cleveland's one goal (outside of winning a title) should be to make the moves necessary to keep Lebron in town next summer.
I don't think the trade at the draft happened because there weren't as many teams available and the Pacers were holding out for a prime level asset (from LA or Boston or somewhere else). I'd imagine at the very least, Love can be moved for a couple of late 1st's fairly easily at some point this summer. Heck I could see Boston going for Love if they strike out in free agency or land someone like Hayward and thus want to get a PF for the starting lineup (though the money is harder to match). I mean is it really hard to see Boston offering Indiana Crowder, Bradley, Rozier, Boston 2018 1st for Love (so Boston's starting 5 would be Thomas, Smart, Hayward, Love, Horford and would still have Brown, Tatum, Zizic, etc.). A team like the Suns might decide to take a step up and give up a quality young player or two for Love. Love doesn't expire next summer so if nothing else it buys Indiana another whole year to move a disgruntled "star", while also removing two contracts that don't make sense for a tanking team.