Yeah, I don't think this means Melo is gone for sure.
I think it still takes the right deal to get done.
1) If he goes to just ANY team he'll still be in a bad situation, why not at least be in a city where you're from and love?
2) If any good team trade for him, trading anything valuable of sorts would hurt that team.
3) Only teams that make any sort of sense have already passed on that deal. Clippers, Cavs, Celtics.
Best option for him is to stand put to A) show he really wants to build his own legacy and not quit on the Knicks or B) force their hands, make them release him, eat up salary, and sign with whomever he wants.