The Heat are lucky that they faced a severely weakened Knicks team. I think that the Knicks really aren't as far away from challenging the Heat as they looked this year. Tho the Heat were a much more tested team having been together for 2 years. The Knicks have a lot more growth to experience before they can match up with the Heat but that process did begin last year to a certain extent. I'll be interested to see how this battle plays out over the next few years.
If you think the Knicks have no real room to improve just look at the Heat. They're already completely capped out for the next 3 years:
Player 2012/13 2013/14 2014/15 2015/16
LeBron James $17,545,000 $19,067,500 $20,590,000 $22,112,500
Chris Bosh $17,545,000 $19,067,500 $20,590,000 $22,112,500
Dwyane Wade $17,024,000 $18,536,000 $20,048,000 $21,560,000
Mike Miller $5,800,000 $6,200,000 $6,600,000 $0
Mario Chalmers $4,000,000 $4,000,000 $0 $0
Udonis Haslem $4,060,000 $4,340,000 $4,620,000 $0
Joel Anthony $3,750,000 $3,800,000 $3,800,000 $0
James Jones $3,350,000 $1,500,000 $0 $0
Shane Battier $3,135,000 $3,270,000 $0 $0
Norris Cole $1,113,600 $1,191,240 $2,150,188 $3,203,780
Ronny Turiaf $1,200,000 $0 $0 $0TOTALS: $78,522,600 $75,781,000 $76,248,000 $65,785,000
The Heat won't be able to really do much to improve either. They will have to look for some kind of trade in order to make any significant change. Thing is they don't have much to offer a team in trade. I do believe that they have their Amnesty left tho, which could help them out if they use it. I'm not sure about that tho.