Larry didn't want to pay Stephenson a big contract. That's mainly why he ended up in Charlotte.
As for revisiting, he would give them an impact player for the bench, and an option if they want to go small...
Teague / Ellis / Stephenson / PG13 / Myles
Stephenson has played that SG/SF role for them before, so that helps them. Also, with Memphis he looked like his old self and that would help them as well. He could start at SG and let them play Ellis as sixth man, or they could use Stephenson off the bench to give them flexibility in line ups and impact off the bench. I guess it also allows them to move Ellis for another player, if they did Ellis for Gay, then Gay slots in at SF and PG13 at PF. It's a fair move as long as his deal is team friendly.
As for us, he doesn't really fit a need because we have Afflalo, McLemore, Richardson and Temple at SG. Doesn't really fit at SF either with Gay, Casspi and Barnes. So I think we are rightly passing on him. Plus, he's not much of a shooter so going for him over Afflalo wouldn't have helped us space the court as well.