One year of cap hell for Indy to earn a boat load of picks and almost guarantee them another decade of brillance is well worth it!
When Palmer gets a 1st and 2nd that escalates to another 1st then trading for Manning starts at two 1st's and then gets going from there.
Manning will be 36 with serious neck problems. I don't think he's worth as much as you think he's worth. He's got 2-3 years left, and he's sure to be in decline. A team will need to be in "win now" mode to take a shot on him.