Melo deserves the award for Jan. Working very hard - offensively and on the boards. D still by appointment only, but, clearly hardest working player on the court, and, playing with weakest supporting cast of any top fight player.
As to the Decision, i hope they move him - even if he assured them he wouldn't leave. They rolled the dice several years ago- Amare and Melo - unfortunately, Amare broke down, and, for whatever reason, even healthy, those two didn't mix well. Can blame ownership for lots, but, Dolan certainly was willing to invest heavily to try. I didn't like him getting fleeced by Denver, but, the criticism that he doesn't want to win is unfair. As to who should have realized/predicted Melo and Amare couldn't jel (Amare, MDA, Lin - lots of folks who apparently can't work well with Melo), or, that Amare would break down, open for debate.
Without draft picks, and tradeable players, you can't "build around Melo". He'll start to decline in several years, and meantime, what would you have? I believe you move him. Team will stink (not a new concept for this franchise, sadly) for a while, but, its the only rational decision, to me.
If you had draft picks, or even tradeable assets besides Melo, I'd say keep him and try to contend near term, but, you don't, so, that's not an option.