According to ESPN's Andy Katz:
James remains on the bubble as to whether he will stay in the draft. He's considered a borderline first-round pick. He said if he can't get a guarantee in the first round, he'll "probably go back to school."
"We can have a great team with Avery Bradley coming in, Dexter Pittman, Justin Mason, Jai Lucas as a transfer and everyone else," James said. "We can have a great team next year." But in the same breath, James said he is ready for the NBA because "I think I can take my game to another level."
Trips has written a number of great pieces on why Damion coming back would be so helpful to the team and Damion's 2011 draft status. Damion is an outstanding rebounder, he can take opposing power forwards out to the three point line, and playing him alongside Hamilton and Bradley's movement and crashing opposite Dexter will mean a lot of gimme dunks.
Damion has also been going to class, so he's not going to have his hand forced.