I agree with the strategy of the potential moves that you cited. Shef, although he was a key player in the 2005 Yankee lineup, just doesn't fit in the strong Yankee outfield. While he took a cut in pay to become a Yankee- and I commend him for that- he has to play where they put him; or else he's gone. It sure would be nice to get the aging Petitte back for a year or two, but old wounds just might come into play here. He left after feeling that the Yanks didn't tend to his contract negotiations as attentatively as he thought they should have.
And who wouldn't be thrilled to see Mattingly take over as manager when Torre decides to hang up his cleats! The guy is a class act.
Finally, Cabrera is just too good to be warming a bench. He will probably be traded for some young starting pitching, which the Yanks sorely need.

 

Besides any hard feelings between Petitte and the Yanks, the other thing reportedly on his mind is his family and being with them. They are in Texas, and for him to play in New York would require a lot of time away from them.

I can't see them dumping Cabrera. They need an extra outfielder and, as you said, he's too good. According to Torre, look for Cabrera to sub for all three regular outfielders next year. I understand that each of the three will take turns getting a day off, and Melky will play their position for the day. This will give everyone quite a bit of rest and allow Melky to get some good playing time. And of course, if any of them goes down with an injury, you've got a guy who can jump in right away.