I have no idea what Pluto is talking about in his point #2.
I also wouldn't have called it "salary cap room" if I were Pluto. They are non-guaranteed contracts that may be used to facilitate a trade, or they are contracts that could be waived if the Cavs wanted to try to retrieve a very small amount of salary cap room. But taking on higher $ contracts never creates "salary cap room"...
Pluto was being imprecise in his language in referring to "salary cap room," but he is right that it does allow them to take on an additional $5M in salary which they wouldn't otherwise have been permitted to do, which is the main thing. I think his point about their contracts being worth $6M+ mid-season is moot, since they will be gone by then, but it is an odd thing to say...
Anyway, the same names are still out there on the free agent market, and the longer we go the likelier it is these guys will be available for the minimum.
If the Cavs execute a Love trade and bring back one other player in the deal, while sending out two players plus the non-guaranteed Utah guys, and if Ray Allen signs, that leaves them with two open roster spots.
If the second guy coming back in the Love trade is a center, the crisis at the center position is somewhat alleviated. However, I would still consider adding another big man to the team, depending in part on whether they feel Haywood will be capable of playing. Brand, Okafor, Stiemsma, Ayon, O'Neal (I'd say roughly in that order) are decent options for this 5th/6th big role.
Another possible area of need is a defensive oriented wing if Wiggins is traded. We've got a lot of wing shooters, but it would be nice to bring in a guy who can guard elite wing players so LeBron doesn't have to do so all the time. That's why I'd be interested in either Mbah a Moute or Brewer in the Love trade. On the free agent market, Shawn Marion is out there and would be a great fit if he is willing to come here and compete for another championship on a minimum salary.
Of course, they could also sign Powell or another training camp invite. The likelihood of one of these guys contributing this year (or future years, for that matter) is very small though.
The Cavs could very well leave one roster spot open, but I can't imagine they would leave two open.