Hear me out.
They would use the TPE to make up differences in salary.
NO gets a solid starter/backup PG to combine with Collison, and a legitimate young emerging talent at a good price in Bargs. They get to ship out a bad contract and move Paul for arguably one of the better deals I've seen thus far, while saving money and clearing some room for Collison when Calderon expires.
Toronto takes a risk on Paul for 2 years - with an emerging Weems and DeRozan running the floor and with Paul facilitating, they can be a true Phoenix East, and moving Bargs opens up PT for Johnson and Davis. You hope Okafor can defend and pop in the easy buckets while eating up a lot of contract space.
Does Paul leave at the end of the contract? Possibly. If after this year he doesn't re-sign despite being on a young running and offensively oriented team, you move him in the offseason, with him having helped grow the young core, and while he will still be a very valuable asset as both an expiring contract and a hell of a player.