According to numerous press reports, the Atlanta Hawks signing of LA foward Josh Powell could mean that the Hawks are less interested (and finanically able) to sign Shaquille O'Neal, at least at his current asking price.
At some point, if he wants to play next next, Shaq will have to drop his price and his demands for playing time. He will also have to accept that he probably won't close out his career playing for a contender, as most of the elite teams have settled their rosters.
If the price is right, the Wizards should jump at a chance to sign Shaq.
Sure, he's lost more than a few steps, only scored 600 points last year, but he does one thing good: He's big, he is a presence inside, and he can still draw defensive attention-- all things the current Wizards roster doesn't have.
Shaq is also a popular personality, someone who would bring joy to the Wizards locker room and help put butts the seats of the VZ center. Most importantly, he can provide that veteran presence for the Wizard's young players, especially for JaVale McGee, who could learn a lot from a 4 time NBA champion center (not to mention a Finals and League MVP, umpteen All-Star, multiple All-NBA center, and top 50 all time player).
Shaq throwing outlet passes to Wall and Arenas streaking down the court would be fun to watch.