I think there are two paths forward from here:
Path 1 - Hire Blatt, flesh out the backcourt with some FA guards (who will be more likely to come with Blatt than Rambis), try to win with Rolo, Melo, FA guards, and develop KP, Grant, Wroten
Path 2 - Work with Melo to facilitate a trade to the Clippers or maybe another team. Focus on getting picks and young players back. With Melo gone, our 2017 pick would likely be top 3. Get a bunch of young talent and teach them the Triangle and hope it all comes together, despite the fact that a young team has never learned the Triangle before and it's only worked with veteran teams and Rambis is a terrible coach.
Those wishing for a full rebuild - take a look at how Portland's rebuild is going. They tore it all down and started from ground zero - seems like they're pretty far ahead of the Knicks. But they have an all-star PG, which Phil says you don't need to win in the NBA.
I just think there are several major conceptual flaws to Phil ever succeeding here:
1) insistence on the Triangle, which has cost us Thibs and any other number of quality coaches and left us with Rambis. And is costing us FA opportunities
2) denial of the Point Guard as the most important position in the league with the new rules.
3) denial of the Three Point Shot as one of the most important value shots in the game.
Look at the teams in the second round and their PG: Dame Lillard, Steph Curry, Tony Parker, Russell Westbrook, Jeff Teague, Kyle Lowry, Kyrie Irving, Goran Dragic (assuming Miami and Toronto win Game 7 on their home floor) - that is a MURDERER'S ROW of Point Guards, outside of maybe Dragic.
IMHO, we won't win **** with Phil operating on these three guiding principals.
And they're all connected. He wants to prove you can win without a PG, without 3s, with the Triangle. Because that's how he did it with Jordan and Kobe. Except we don't have Jordan and Kobe.