If he was going to stay, or go to the Lakers, or any place, he was getting that sort of contract. The problem is that he doesn't produce in line with players on good teams who make that sort of money. You're talking about being paid the amount that could net you 3 starters, or 2 really good starters. Considering our lack of talent in the starting 5, we certainly could use a Gallinari and a PG moreso than a Melo (Just throwing it out there as what Melo's salary could also get you).
I give him credit as well. And he's been positive with KP and patient with the re-building. However, I just don't see a place unless there's rapid internal improvement where this team will contend simply by adding 1 player in FA this coming summer (No draft pick). If we can get a starter back, clear some capspace to add maybe 2 more starters this summer, get a draft pick as well, I much rather have that flexibility to work in a re-build. And this process is going to take 2 more years, in which case one wonders at 33, what/how much Melo making 27 million a year will have left in the tank.
I do like him though. I also wouldn't deal him anywhere where he didn't have a shot to win. I've suggested Miami because he'd fit in there and give them a real shot at a ring right away.