You are experiencing a concept error: first of all, as Bricklayer already pointed out, teams like Portland, New Orleans and even Orlando are much better examples for the point you were trying to make than the Knicks. Secondly, the #8 seed is an accomplishment for a young team specifically because they are a young team that is coming up from the depths. We're not coming up, we're going down. We have a team whose centerpieces and longest-tenured players are the ones that are left over from when we were a good team. We're a team on the decline; our goal should be getting back to elite status, not trying to tread water and keep the status quo. Nobody that's going to be available at the 11-16 spots are going to help this team become elite again. Honestly, I'm flabbergasted that you can't tell the difference between the two situations.
And here's another concept error: I've seen some people talking about how we have picked up good players in the draft, but that's not the point: the point is that those guys aren't stars. As I've stated in previous threads, I only define a star as someone a winning team can be BUILT around; Josh Howard is a great player, but you can't build a winning team around him, same for Tony Parker, same for Mehmet Okur, same for Gerald Wallace... And the same for Kevin Martin, unless you want the Kings to be the Bucks of the west, because that's about as far as a team built around a one-dimensional shooter tends to go: BEST-case scenario, he becomes the next Reggie Miller, and the Kings eventually become the 99-00 Pacers, but even Reggie had Smits and Davis.
We might very well get another steal like Wallace, but the next Gerald Wallace ain't gonna cut it when our goal is to get back to the elite. Furthermore, as good as late-round picks like Martin and Wallace and Parker and Howard are, there is still a quantifiable difference between guys like them and cornerstones like Duncan and James and Wade. You're right, we might get another steal late in the draft, but Pippen don't get you the championship, Jordan does, and you're not going to get Jordan with the 23rd pick.
Do you know how many times in the history of the NBA that the Finals MVP was a guy taken outside of the top ten? Four. So perhaps the next time you talk about "maybes," you might like to think about that.