I just don't see the Knicks pulling it off. The only way they could win the division is for a COMPLETE change of team personality. D'Antoni would have to start coaching defense (which he hasn't done in a 20 year career), Melo and Amare would have to change their respective styles of play (and in 9 year careers neither has shown any inclination to do so), Baron Davis would have to shake off serious injury and motivation issues and play like he did several years ago, Tyson Chandler would have to play consistently (although he did well last season, he has not shown consistency over his career), and Landry Fields and other random role players would have to have career seasons.
If D'Antoni, Melo, and Amare don't change, the Knicks simply are not that good of a team. Melo hurts his team more than he helps it (once again, why did Denver do so much better AFTER the trade than before?). Amare is good, but injury prone and inefficient anyway. And D'Antoni is an idiot.
I think the Knicks will surprise people this year in not living up to the hype. They will rack up regular season wins against bad teams, but I doubt they make it deep into the playoffs. The Celtics need to be bit by the injury bug to lose the division (though, granted, that isn't exactly a farfetched scenario).