Lugo certainly is hot right now. If he can keep hitting at this level, he certainly qualifies as a breakout. I don't think he'll ever give you much power, but the rest of his stats ought to be solid for a thin position.
Carlos Guillen has certainly performed better than expected. He also won't be a star, but might be worth a look for those hurting at ss. Izturis has potential but may not show it for a while. And Rey Sanchez will be overlooked in many leagues.
As to the trade, I'm not sure that Dempster is the (main) issue. I just wouldn't be happy receiving Leiter as the main pitching return in a trade where I give A-Rod, and if you get Schilling, giving up Morris is too much. The deal would look a lot better if you can find a scenario where you receive Schilling and keep Morris. Good luck wheeling and dealing!
I agree with Arlo. As soon as you put Arod in the mix, you have to get back Schilling. It's only fair! We're talking about the most in-demand player in all of fantasy here. Start off with Arod and Schilling, then see what else to add.
If Arod is in the mix, another STUD name has to be in the mix. I am sure that you selected ARod with your 1st pick? You had a top 3 pick? So, unless you are getting a 1st round pick in that deal, it isn't worth it. 50 HR's from a shortstop? You don't replace that.