The notion is that Harper, a former catcher, would switch to first base. Either that or he goes into left field and Stanton stays primarily at DH. Brett Gardner will surely be used only as a backup outfielder (and don't even mention Jacoby Ellsbury, who's a pure salary dump at this point whether he's able to play or not). Plus Harper would be a lefthanded hitter in a lineup that's currently stacked too much with righthanded hitting (he'd love that short right-field porch) who also has an excellent OBP whether he's having a good BA year or not, due to the sheer number of walks he's issued. Machado is toxic and is who he is at this point, whatever he may say to Hal Steinbrenner about his playing approach.
I also agree that NY should pursue more pitching--picking up Paxson was a huge help in that regard. Sign Corbin next, and you'll still have money to sign Harper.