Assuming the report is true - which is hard to tell because there is no statement from Deron himself - this is something of good news.
It brings clarity for the Blazers.
They can go straight for Plan B.
I posted a while back, that I felt the Blazers were in a position with the team they have (unless they won the #1 pick in the lottery), that using this summer's cap space to sign the very best unrestricted free agent available, Deron Williams, who happens to be at a position of extreme need, was the only real chance the team had for a Quick ReTool.
There is no other path for a quick retool that will vault the team into legit Conference Final contender status (a top 4 Western Conference team).
If Paul Allen hadn't had his brush with death, he might be more willing to face this truth and consider trading LaMarcus for picks or younger players.
I think they will try to craft a two year plan to retool and hope that the team improves enough so LaMarcus will resign when his current contract expires. I think it will unlikely that the team can get real good in that time frame.