First, false rumors? In this day and age who knows what the truth is, but no team is ever going to admit they're shopping their players. Maybe Thompson and Wiggins are both on the table right now, maybe not, but neither team is going to go out to the public and be like 'yeah we'll confirm here before any deal has been reached that we're considering trading key players. Sorry dudes, no hard feelings. Hopefully you don't mind still playing for us if we don't trade you!' Come one, man. Don't be that dense.
Otherwise, I agree with a lot of what you've said up there with exception of the "get love for lesser assets" portion. I don't have much faith in Flip, but his stance here needs to be Wiggins or bust and he needs to stick to that. Personally, I don't really care if that happens at the deadline or as a sign and trade in the offseason or not at all. The worst thing he can do in this situation, is accept what you're laying out, that "something is better than nothing." That isn't true at all. I don't want to pay Anthony Bennett 6 million dollars a year for the next 4 years. Nor do I want to pay Waiters 5 or whatever he makes for the next three. I don't really care if Waiters has a decent chance of becoming a rotation player in the NBA nor do I have any interest in paying someone that just had arguably the worst first season for a first overall draft pick ever that much money. If we get to next offseason, no team has budged on either an established core player or one that has that potential, you let Love walk, you free up that 16 million dollars in salary and you tell both the Warriors and Cavs to go fuck themselves. There is zero good that can come from Flip playing hard ball now only to bend over and take it in a few months.
You listen to me Cleveland. You're giving me Wiggins or you're not getting Love. Those are your two choices. Not that you'll wait me out and I'll give you love for your blown draft picks at a later time. Trade for him now, or enjoy watching him play for the Lakers after next season. Make them call this bluff. Trading love for Bennett and Waiters (or Barnes and Lee) puts us in the exact same place we are just letting Love walk. We're still a shitty team with only one 'core' piece (Rubio) that needs to bottom out in the lottery.
I don't want to deal with the Warriors at all but if you're Flip and you love Thompson as much as he apparently does, you tell them the same thing.