Maggs, for me, is a top priority. Trade PK, let Frank go so you can afford another good pitcher.
If Maggs has a great year, he'll hit about .340, 42 HR and 140 RBI ... couldn't ask for more than that. If we could get a rightfielder for $7 Mil that could hit .300 - 32 - 100, that would free up $7 Mil to spend elsewhere. If you kept Maggs you'd be spending that money on 10 extra HR and 40 or so RBI. I'd rather spend it Luis Castilla or another good starting pitcher.
That's why it makes sense to trade Magglio. I think the guy is great. I'd hate to lose him. But, you have put things in the proper perspective and look at the big picture.