This was a smart decision by the Knicks. It's just not worth it for 2 very important reasons.
1. You can get the same value at PG with Felton/Kidd as you could with Lin/Kidd. If Felton comes to camp in shape and motivated, you will get better value with Felton over Lin for less money. Felton played some of his best years with the Knicks and Amare had some solid games playing with Felton.
2. Lin is an untested PG. He played in a lockout season and teams had no idea how to play him. This year will be different. Every team will have a scouting report on Lin and they will watch how Chalmers and Cole from Miami shut Lin down and frustrated him.
I understand Linsanity and the emotions are high. Also, many people are bandwagon fans who were fans of Lin and not the Knicks. These people will be wearing Houston jersey's next season.
The Knicks will be a 4 or 5 seed this season. Orlando will not have Howard, the Hawks have lost major pieces and Chicago will be without Rose for most of the season.
2. JR Smith
That's a solid starting 5.