Nets have some good young players, picks and some cap room they need to just rebuild.
Trading all those chips won't get them anywhere really.
Melo can of course possibly get a longer deal in the summer as an FA compared to the $65 million 3 year deal on the table. With the possibility of a lockout, any team making a move for Melo now could possibly only get 2 full seasons out of him before he was a free agent again. The Knicks signed STAT to a 5 year deal last summer and would surely want to get Melo on a similar length deal. If Denver had offered Melo a full 6 year deal and that was on the table then they would have probably been in a stronger bargaining positon.