I don't know if the Pacers made out in this deal. Stephen Jackson was the only wing player in Indiana that could manufacture his own shot. He might have been hated for his off the court antics, but he was Indy's best wing player.
The rest of the trade? Don't know. Seems like a lateral move for both teams. If anything, Indiana gave up more production (current stats) in this deal. Murphy/Dunleavy Jr (worst contract in the NBA)/Diogu(nice steal) for Jackson/Harrington/Sarunas? Fair swap, I guess.