This rumour has come up several times now so I won't dismiss it immediately like I do with everything else that comes from the Sun.
Good deal for the Raptors. The Knight for Alvin swap is clearly in the Raptors favour. I'll be surprised if Alvin ever plays more than 15 games in a season again and Brevin Knight, while no star, is a decent stopgap solution at starting PG until the draft/offseason next year. He's small but energetic on D, doesn't have a good shot but is a good playmaker.
The #1 for #3 is fine since Bargnani should still be there at 3.