Yeah, it'll be a little while before Young is effective off the bench (I'm hoping by the middle of the season but who knows). The bench is probably just going to be Songalia and Daniels for the time being (they're going to have trouble rebounding again, fun). I'm a little surprised that it looks like Haywood is staying on the team after the blow up he had at the end of last season (although I am sad that his sparring match with Thomas are going to end).
Personal issue aside, Haywood is a more effective center, and at a cheaper price than Etan. Plus, if you only want to keep one of them, you would be wary with Etan's injury history. In his 7 seasons in NBA, he averaged less than 50 games per season (60%). In contrast, Haywood averaged 74 games (90%).
In addition, I think Ernie also wants to manage cap space, getting rid of Etan would give Wizards more cap room to maneuver (since Etan has the bigger contract). Of course, there is a personal problem between Haywood and the coach. But judging the fact that all EJ's assistants only received one year extension, EJ may not be here after 2008 if he cannot advance Wizards to the next level.