I don't know why people are ripping the Grizz. There were reports teams that strike out on the other big free agents would of offered him the max with the poison pill to go with it. The Grizz overpaid, but at least the knicks didn't get him.
It's better to let him go than overpay him by so much. This will cost them financial flexibility in the future. Morey has been so successful because he finds value and doesn't overpay for players. Rudy Gay isn't going to be the last wing who can score 20 points per game (with poor passing and D). Other guys who are better will come along. Yes, they might be worse off short term without Gay, but it's better than condemning yourself to mediocrity long-term. Don't the Knicks wish they hadn't overpaid for so many players over the years?
The worst thing a franchise can do is signing a pseudo-star to a big long term contract. That would strap them down in mediocrity for the duration of that contract. Or they would have to beg other teams to take the guy off their hands giving away assets in a lopsided trade.