The difference in the team Phil took over and the team we are now is that we have a) some young players and b) we have some capspace to keep getting better.
The very fact that we have Porzingis and he's playing so well should give us something to work in the future.
As I've said many times the biggest issue with the Knicks will remain Melo. When he plays well like he should, he's an asset. However when he doesn't, which is about half the time because of his physical decline (injuries, pains etc.) he is way overpaid to be a team's franchise player. He's making almost the same money the other 4 starters COMBINE to make. That's ridiculous. He's not that good a player on a consistent basis to warrant that kind of contract. It's hurt the team's depth and what they can do.
On the plus if they can get better through free agency they can add some depth and much needed changes in the rotation and rely less on Melo. If that happens, regardless of how much he makes the team will be better by considerable margin. And there's always a real possibility that Porzingis will come in and play even better next season as would Grant.