I don't think NY wants to trade Carmelo at all, but if they do I think they'd have to get out from under Amar'e's deal in addition to getting quality assets in return. Don't see Chicago signing up for that if they can help it.
I really can't envision the Knicks trading Melo either.
The PR 'nightmare' that would result is probably too much for Dolan. I suspect Dolan would rather lose Melo to free agency than trade him and acknowledge the failure the last few seasons have been.
I agree, but at the same time if they can get rid of some dead weight and re-stock the shelves I think they have to consider it.
Something like this makes sense (Boston would need Melo to opt in to the final year of his contract)
Boston - Anthony, Chandler, Smith
New York - Humphries, Green, Bogans, Bradley, Faverani, Ezeli, 2014 Brooklyn 1st, 2015 Boston 1st, 2015 Philadelphia 1st
Golden State - Bass
So post trade Boston is
PG - Rondo, Bayless, Pressey
SG - Smith, Johnson, Bayless
SF - Anthony, Wallace
PF - Sullinger, Olynyk
C - Chandler, Anthony
Team is still probably a piece away from title contention, but would certainly be a team that could scare contenders. Boston still would have a bunch of assets to make other moves as well.