Here's our solution: tank

Getting some big-name free agent next Summer was always a pipe dream anyway and we have no chance considering how bad we clearly are. And without some major improvement next Summer I expect Melo to force his way out (picture Vince Carter in Toronto). That means, time to start selling off older assets for draft picks and youth. Melo is of course the big name but he has no-trade clause which makes any deal much more difficult. And, I'm not sure who would be willing to trade for him and Melo would agree to a deal to. I think our best bet would be Houston or GSW. Houston's difficult because they don't have any large contracts outside of Harden and Howard; any deal with them would probably have to start at Ariza, Terry, and Papanikolaou. We would also have to get Clint Capela and/or Motiejunas and a future 1st. GSW is a little easier because they have DLee and AI plus a bunch of younger assets who would at least be interesting but fewer future draft picks.
We should talk to Detroit about how badly they want to get out from under Josh Smith's and Brandon Jenning's contracts. We can trade them Amare's expiring but would have to get back at least one future 1st. And, who knows, putting Josh Smith back at his correct position, PF, we might be able to rehabilitate his value and flip him to another team.
We should also talk to Boston about getting out from Gerald Wallace's and Jeff Green's contracts. We could trade them Bargnani's expiring straight up for Gerald Wallace of include Dalembert's expiring for Jeff Green. Again, we would need at least one future 1st to do this.
Once Calderon comes back start shopping him around the league. Good passers and lights-out shooters always have value and there are several teams that could use him: Houston, Cleveland, Chicago (if/when Rose gets hurt again), and Memphis all come to mind. Of course, it'll be a little difficult to find a matching contract.
If we don't trade Dalembert to Boston, wait for the inevitable Varejao injury in Cleveland and trade him and/or Aldrich there for a future 1st and a 2nd.
Shop Hardaway around the league and gauge his value. If we can get a future 1st from someone do it.
Shop Shumpert around as well but I'd prefer to keep him past this season.
Tank the rest of this season and hope for 1st overall. Draft best player possible (Jahlil Okafor?) and start building for the future.
Now the joy of my world is in Zion
How beautiful if nothing more
Than to wait at Zion's door
I've never been in love like this before
Now let me pray to keep you from
The perils that will surely come