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Eh... I guess. With all due respect to Mr. Bibby, at this point in his career, he doesn't provide much other than 3-point shooting. For the past couple years, he hasn't been much of a play-maker because he's played with some ball-dominant players (Joe Johnson and Lebron James), and that would be the case here, as the Knicks have two of them. However, he wouldn't hurt, as he'd most likely take the veteran's minimum to play, and according to that Berman article linked above, he'd be willing to play off the bench.
Why not? He provides 3-point shooting which the Knicks need, and he is point guard depth. We'll see if anything actually becomes of this though.