I think the best option for him and the team is to move on. He still has trade value so we could use him to get a decent return or in a package deal.
For him I don't see him finding it here, maybe just needs a fresh start somewhere else. Probably best for his career to move on.
I think the trade value debate is a rather interesting one. He certainly still has some trade value (even Jost had some at the end!), but how much I think is incredibly variable and growing more so by the day. I don't know how anybody looks at his body of work and values him anywhere near at 1st rounder. He shows some signs, but also some real struggles. Those struggles he's having likely limit the number of teams that would be interested in him. It is going to take a team with weakness up front and a scouting staff that were huge fans of him to pay value the Avs would likely desire. That is likely a small, select group of teams. Of course you could dump him for a 3rd to anybody, but that likely hurts the Avs more than it helps.
I could certainly see him finding it here, but it'll have to be in a different manner than what the Avs are trying.
I really think for Newhook to be at his best, you need a speedy, very good forechecker on the other wing who can one touch passes and be effective without the puck (Lehky is exactly that) and you need a bigger, space creating center who excels with the puck on his stick. You could have a Newhook-MacK-Lehky line that would likely be very good and get Newhook settled... it would also very likely hurt the top line production. If you could get Larkin as a 2C (pipedream), I think you could really have him settle in.