Playing for this year, and thinking of selling E5 high (and buying Hosmer low) by offering Edwin for Hosmer and Kyle Seager (Hosmer would replace E5 in my lineup, and Seager would replace Seth Smith for now (i have some position flexibility), and Howard Kendrick (or Trevor Plouffe) once he plays 1 more game at 2b.
Hosmer is a good buy low candidate, and I've always been very uncomfortable with Encarnacion. That being said, I don't think we've seen enough positive signs from Hosmer to justify the trade, assuming that you are playing for this year, as you note. IMO the payoff is too small to pull the trigger. I would think that you could get more for Encarnacion, given his performance and eligibility.
Playing for this year? Keeper league? I think E5 has much more potential this year than Hosmer if he can stay healthy. I picked up E5 in 3/5 leagues I am in on the cheap at the beginning of this year and he has been carrying my team so far (I also own Hosmer and that POS Zimmerman in most of my leagues so I'm maybe a bit biased).
E5 is a top 5 1b and 3B if you look at his numbers and you won't upgrade by getting Hosmer. As of now E5 is a top 15 player according to Yahoo. So you should be able to aim for a better player for sure, but I'm not sure what you would be gaining by swappign E5 for Hosmer...
10 team h2h C Jesus Montero 1b Butler 2b Phillips 3b Beltre SS Rollins OF Braun, Rios, Craig, De Aza Util Ortiz SP Felix, Bumgarner, Zimmerman, Haren, Hammel, T. Hudson, Lynn, Gee RP Jansen, Reed, Cook, Santos DL