Bit of a bummer as I think Devin Harris would be great for this team. But if the rumors of NJ's asking price for Kidd is true I'm not at all surprised that Portland would have backed out of that. Frye/Jack/Webster or Outlaw is incredibly steep.
When you have a team that you are building for the future, I think you certainly look at the possibilities, but you don't need to make any moves while in the evaluation phase.