This trade is pending on Melo's decision on signing an extension. There could still be some snags because the Knicks will meet with Melo over the all-star weekend, but it looks as though this latest deal is serious. Lets look at who would come out on top if this trade goes down.
Denver- They would receive Devin Harris, Derrick Favors, Troy Murphy, Ben Uzoh, and 4 future first round picks. The Nuggets get a lot of value in this scenario. They have Ty Lawson, who is thought to be their point guard of the future, so it would have to be seen what they would do with Devin Harris. There have been trade rumors surrounding Nene and J.R. Smith, possibly they could package Harris with one or both of these two players to land some one else or they could maintain Lawson's roll off the bench. They could do the same with Murphy, he is an expiring contract who has a good skill set, he would be very attractive to a lot of teams. They will build around Favors and hope that he becomes a dominate force in the near future. The 4 draft picks allow Denver to build a young squad, but it will have to be seen how well the Nets play, these could turn into 4 draft picks in the mid to late 20's of the first round.
New Jersey- They receive Carmelo Anthony, Chauncey Billups, Sheldon Williams, Melvin Ely, Renaldo Balkman. With some of their big contracts, such as Outlaw, they will not have future flexibility when it comes to signing another top player in the future. Billups is still a good floor general, but he is getting old and his productivity will dip in the next few years. That being said they get Carmelo Anthony, one of the best scorers in the league. They have a good core for the next few years in Lopez, Anthony, and Billups, coupled with shooters at the wing in Morrow and have a good young player in Damion James. Shelden Williams and Melvin Ely give them big bodies to spare Lopez and Balkman and Humphries are all hustle. They will need to get more out of Outlaw to justify his huge contract.
Overall New Jersey seems to get the best out of this deal. A lot will depend what they do in free agency or if they make another trade. The same can be said with the Nuggets, what they do in the draft and with their players headed into free agency. I think this is the best trade the Nuggets can get, unless the Knicks counter with a huge offer, and it gives both teams the potential to win either now or down the road.