As usual there's a middle ground to be taken. Hendo is a decent SG. If he could gain an ability to hit the 3 at >40% then there is, unquestionably, a place for him on this team. It all comes down to value ... can we resign him to an acceptable contract or can we get more 'value' by trading him?
If we take our 'fan' hat off and replace it with a 'GM' one then Hendo is an asset and we need to get the most value for him. The one thing we can not do is pay him too much money to stay. I don't think anyone (aside from his agent) rates him as more than a $6 million per year player, for example.
We can not hurt our cap in order to retain an eminently replaceable player.