They're legit right now. They've upgraded at PG, improved their depth, and are gelling.
Grantland had a good article on how well Melo's doing and how that might change when Amare gets back because he'll eat up space in the post. But on the flip, Shumpert's a guy who scares me so if he comes back healthy that's a guy they can throw in anytime and he'll be effective.