Not sure if he's really overrated. Most people know what he is. He's a very good scorer capable of huge games but in general gives you very little else on the court and can very often be lazy and selfish. That's how I think most people view Melo.
But as far as his scoring ability and being one of the best or most versatile scorers in the league, I think it still applies. Motivation and effort don't change his talent on offense. He has the talent to be one of the best scorers in the league. That doesn't mean he maximizes his talents or that his scoring ability results in wins or great leadership or great defense or anything else. It just means he's a really good scorer.
I wouldn't put all of this on Melo. He shares blame but there are plenty of flaws to the Knicks team and they're dealing with several injuries, and they're going up against a more talented team. I don't think people put Melo in the class of LeBron or Durant or even guys like Kobe and CP3. Melo is lazy and a wasted talent to some degree, but I don't think he's overrated right now.

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