I like Melo, but he's always been misguided about how teams get built around him. Would he have taken the "hair cut" Lebron/Wade/Bosh did in Miami for four years?
The Knicks can still put some good FA around him, while trying to develop a younger team and a style of play.
Melo can either buy in or ask out. I could Houston or maybe the Lakers being interested if Melo were to waive his no trade. Maybe Atlanta? Maybe Chicago still? He'll have to prove he's healthy first.
I think Melo will give it one more season and then ask out next summer if he's not happy. Or he'll get jumpy and try to move this trade deadline.
Kobe did the same in 2007, I think? Got jumpy and wanted to out of LA - wanted a trade to Chicago because it was taking Phil and the Lakers too long to build a squad around him. Then the Lakers got the Gasol trade and made three straight Finals, winning two. Maybe the development of Porzingis + the FA in 2015 and 2016 can be the equivalent.
Regardless, miles to go before we can get to that point. If Melo didn't realize this was the course, he didn't have his eyes open.