It's over. For now.
The door isn't necessarily officially closed on a Nets-Magic trade though until Lopez actually signs an offer sheet with another team (in which case he can't be traded for a year without his permission if Nets match) or signs his extension with the Nets (in which case he can't be traded until Jan. 15).
There are varying reports noting the Magic have ended talks to move on focusing on their coaching search or the Nets closed discussions. It really doesn't matter as talks are dead, for now.
Howard has attempted to steer a trade to the Nets to join Deron Williams in Brooklyn, but the package the Nets are offering is substantially weaker than what the Magic can solicit from other teams. Though Howard is indicating he'll only re-sign in Brooklyn.
Other potential destinations have emerged such as either the Lakers or Rockets. And of course, there are always dark horse teams such as the Warriors, who have expressed interest in Howard on a "rental" basis.
After all of that, on July 11, 2012, the starting center for the Orlando Magic is... still Dwight Howard.