I wouldn't be lol'ing if I were HOU. Lin still has a big bust factor and while the contract for NY is structured strangely, either way they are paying him more than he will be worth - it's just to what degree (from a basketball perspective).
If he improves on his limited sample size consistently he will be in line with what he is worth. If he doesn't improve or it was a fluke, it will be laughably bad.
I think Felton will actually do fine in NY. He is more than capable and in that system he should do just fine. Felton for less years and money to me is the better play.