This is a perfect storm of spite, inexperienced and immature management, and a total lack of decisiveness.
If Denver doesn't want to deal with us, fine. Have the cajones to come out and let it be known. Guarantee it ups the offers of every other team trying to get him knowing NY isn't gonna happen and they are not being used as bargaining tools.
The lack of a decisive direction they want to take post Melo is another problem. Obviously they want to rebuild but they have no plan on how, be it FA signings, draft, or obtaining their new guy in this trade. One way has to rank 1st.
The way this management team has handled this is beyond unprofessional. Leaks, numerous negotiating ploys through the media, and this stringing along of the NBA is a horrendous example and a horrible face to show other NBA players and management teams alike. Denver would have been much, much better served coming right out and saying Carmelo will not be moved until the deadline if at all. OR biting the bullet and choosing a direction much sooner. It is a catch 22. You can't trade guys like Chauncey because you want Melo to sign and you start trading off those guys before Melo it hurts your leverage with other teams knowing your direction.
On the flip side you trade Melo sooner you can gain anywhere from 3/4 to 1/2 a season leg up on your rebuilding. You actually have options.
If I was Denver this wouldn't have went past Christmas. If Melo wouldn't extend with NJ take an abbreviated offer of Harris(the guy is made of uncooked spaghetti noodles he is so fragile they would be doing them a favor), Favors, and a first. Flip Harris to a team like Portland(younger then Miller), Toronto, Dallas(maybe with them you can include Harrington) for some expiring and a pick or two. Now you got a base, a direction and some flexibility.