I could see the following two trades involving Denver.
Knicks get Kenneth Faried
Denver gets no 4 pick
Kings get Ty Lawson
Denver gets no 6 pick and Darren Collison.
Denver becomes the Sixers of the West.
As for the Knicks, I could then see them going after Greg Monroe and having a front court of Faried and Monroe to go with Melo.
I think you must have left something out from NY's side. If most think they wouldn't trade the #4 for Lawson and Faried, then I can't imagine they would trade it for just Faried.
I think a lot of people here are overvaluing the 4th pick. From all indications, the 4th pick will be Mudiay who could be just as much of a bust as he could be a star (guess you could say that about any draft pick.)
I think the Knicks getting a very solid player in Faried for the no 4 pick is a very fair trade for both teams if Denver is looking to rebuild.
If I am Denver, why on earth would I trade both Faried AND Lawson for one draft pick which may or may not pan out?
I don't think Mudiay ends up becoming the next Magic Johnson.