Because Rudy is not on the table for a roster rationalizing trade (ie, a good player who is a backup for a good player who is a starter improves the rotation, but not the overall talent level).
Fact is Rudy and Wallace are both good players.
Fact is KP would be taking a big hit to his reputation among agents and players by shipping Rudy to "purgatory" in Charlotte.
Rudy won't (and shouldn't) be traded this year except under two circumstances:
He wants to be traded, and approves the team.
The trade is for a young all-star talent, and thus the PR and deal making reputation hit is worth it.
At further issue is that RLEC is not only valuable to other teams, it is valuable to Paul Allen. Giving up that asset will cost him a TOOOOOOONNNNNN of money.
In a deal the Bobcats can have EITHER;
RLEC and minor talent, OR
A good prospect and matching contracts.
If they demand both, to heck with them.
The deal as proposed (RLEC, Rudy, Frye for Wallace) doesn't work anyway. Bobcats would have to add one of their nasty contracts to match. Yuck. No. Double Yuck.
I laid all this out many months ago in my Gerald Wallace thread. My position is completely unchanged. Why should it be?