Compared to his usual self yes, but outside of Tyson he's the only player who has been worth a damn on that team for more than a week and that doesn't even consider how long he was out with injury.
Only player that could possibly look decent in that situation is Durant due to crazy range and LeBron due to his physical gifts and having the past experience playing with a D-league level squad. Still easily the third best sf in the league.
Melo has a decent PG, a defensive SG Amare at PF (Though he has been booty) and Chandler.
he also has a 6th man off the bench and a great 3 pt shooter. Dude is supposed to be a first option All-Star. Switch him out for a healthy Gallo and this current Knicks team is much better off.
His team mates aren't CHip quality but he should be able to pull them into the top half of the playoff seedings. I mean, they were better without him.
You could sub tons of SFs for Melo and The Knicks would instantly become better.
Pierce, Granger, Iggy, Marion, Deng, Rudy Gay. That list shouldn't be that long if you're paying someone 100 million american dollars.