I go back and forth with Melo. As I said before, the optics of pushing a "good soldier" out isn't good from a PR perspective. Not many guys wanted to come to NY and accept the challenge but Melo did, which I respect him emmensely for. That alone should give him some say on how he should end his career with us.
Also, it is not like Melo is hurting our underlying plans to build around KP. We are still God-awful with him and are in position and on pace to grab a pick in the top 5 of this draft. If things shake-out favorably, maybe we get the 2nd pillar to build our franchise with and could make a couple playoff runs with him, Melo and KP.
But the optimal route is to still move Melo and jumpstart the rebuild/retooling process. Our ultimate success lies several years into the future and keeping Melo doesn't further the process to get to that point. If Phil isn't a couple idiot, I don't see how it'd be hard to move Melo and Courtney Lee to LAC for JJ Redick (who we'd move to a playoff contender for a 1st), Austin Rivers, their 2021 and 2023 first round picks; then find a third team to take Jamal Crawford. The assets won't mature until well in the future but there is no need to have them any sooner, since we should tank a season more or two to maximize our rebuild potential.
P.S., I'm still intrigued by Nikola Mirotic and think he'd be a great fit playing with KP or backing him up. If the Bulls out him on the market, I'd gladly swap Midngas Kuzminskas out for him.