There is a reason why they are willing to trade that pick: it isn't the strongest draft. Unless it is a player that a team can be built around, I'd have to say pass. Only way Holland should look into this is if all he has to give up is prospects/picks.
On the other hand, this would be a first overall. Given that we're never coming close to the top eight, and that our scouting and drafting and prospect development are second to none, I think it's absolutely worth considering, even if it means we lose a young gun or two. I love Nyquist, Tatar, Sheahan, and Jurco, but not one of them is truly untouchable.
We need a stud center in the pipeline, so, without thinking too hard about it, I'd probably pick Reinhart. That'd certainly make up for Jarnkrokgate.
But would this happen? Would Tallon actually trade the pick, and to a divisional rival? Well, the answer to the latter question is, I have to think, Hell f****** no. But I do think he's going to seriously consider moving the pick, for the reason you gave. My impression is management wants to start winning and is kind of done with building for the future. They could use some star power. Get people excited, put butts in the seats. That's why Tallon got the green light to spend this summer. I bet he moves the pick for a very good return that helps them NOW.
"If I were to wish for anything, I should not wish for wealth and power, but for the passionate sense of the potential, for the eye which, ever young and ardent, sees the possible. Pleasure disappoints, possibility never. And what wine is so sparkling, what so fragrant, what so intoxicating, as possibility!" - Kierkegaard