If Knicks have the chance to get Dennis Smith, they should absolutely go for it. Kid is a special talent and if this draft was not so PG heavy, he'd be going in top 5 comfortably. Right now Fultz, Ball and Fox are considered better prospects but I won't be surprised at all if Smith ends up being the best of them (maybe behind Fultz but he definitely has the potential to be better than Ball and Fox).
There will be a big difference between 7 and 8 this season IMO, unlucky for Knicks to go a spot lower in the lottery. Fultz, Ball, Jackson and very likely Tatum (would be shocked if he doesn't) will go before 8th pick. That leaves you with Isaac, Fox and Smith as top NCAA prospects, and if you are picking 7th you are sure that you will see at least one of them fall to you. What Knicks have to be counting on is that somebody takes Monk, Markkanen or Ntilikina before. It's actually not that far fetched that someone will take a chance on Monk (or at a push Markkanen) before 8th pick. I very much doubt anyone will take Ntilikina before.
Ntilikina would be a reach at 8. Don't think he's worth that. If Isaac, Smith and Fox are off the table, take Monk (Markkanen makes no sense as he's basically a worse Porzingis).
If I were Knicks I'd probably consider trading Anthony for some later picks, I guess given current circumstances he'd waive his no-trade clause and agree to go pretty much anywhere. Not sure what they can get back but anything would do now I feel. Maybe Minnesota or Orlando would appreciate his veteran presence and would go for Anthony + 2018 1st for their picks from this year, if this also helped them dump some salary (Biyombo for Orlando for instance). That Knicks 2018 pick would probably be top 5 if they end up without any serious veteran presence this season and are lining up with Isaac (taken with the other pick), Smith and Porzingis as main players.
Alternatively, and as a Portland fan I DON'T WANT that to happen, they can offer Carmelo for Crabbe + no. 20 pick. Crabbe is better than shooting guards which New York have, and additional pick would be handy. Portland would probably prefer Carmelo for another 2 years to Crabbe for 3.