If he took less to play with a healthy lineup of Rose, Butler, Melo, Gibson, Noah...absolutely. That team would be filthy. I think they would be the favorites to win the Championship regardless of what Lebron does.
2 problems with that however:
1) Rose could end up being Amare part 2. Melo knows far too well whats its like to play on a team with your supposed max-contract counterpart giving the team absolutely nothing.
2) To get Melo anywhere near the money he would want, they would have to trade Gibson.
That leaves Melo taking less, going to a team with a question mark Rose, Butler and Noah. Is that team that much better than what NY could give him, especially if NY snags Thibodeau (which is the real reason the Noah/Melo conversation took place).