The only holding out on David Lee's mind right now is mainly the hope that his contract status will be resolved fairly soon. In fact we're hearing through a source tonight that there are "are a couple of sign-and-trades still being considered before a one-year deal is negotiated."
Neither scenario is surprising as it seems that Lee is no longer in New York's long term plans, suggesting they're banking heavily on being able to bring in two noteworthy free agents next offseason. It's not the first time sign-and-trade rumours regarding Lee have gone around this offseason, last time the Bulls were mentioned and while I'm not holding my breath on that happening, I'd certainly like it to happen. Utah is mentioned as a possibility in the article and that would suit New York fine; if they can keep Boozer and get one of the big names next year, they could have an impressive one-two punch. If not, they get the cap relief. Portland has also been mentioned but I'm not so sure about that one, between Lee and Aldridge (if they end up signing him to an extension) they'd be paying a lot of money for one or the other to not get as much PT as either side would like.
If Lee ends up signing the one year qualifying offer, presumably he's gone at the end of the season unless all other plans fall through. However, as the Ben Gordon situation demonstrated a team can't rely on a player showing loyalty when they're not being shown loyalty in return. There'll be a decent amount of interest in Lee and unless he's willing to hang around and be the Knicks' fallback option, I don't see him sticking around.