I don't think that'd work. Rudy Fernandez probably wants a starting job on a contending team if he's going to be forced to continue in the NBA.
His team has matched up well with the Cavs in the past. However Melo struggles even more scoring the ball, against James. http://www.basketball-reference.com/play-index/tiny.cgi?id=n8rUt Melo has never been at 2009 Roy's level. Melo also had that ad about Carmelo fans in Utah, then dropped that series. Also that's not head-2-head, that's focusing on one play and ignoring that Melo plays worse against James.
There's very little incentive in that for Denver. I love Batum, but he's not enough to headline a deal for Melo. You dump two big contracts on them (one of them for a big man when they already have Martin and Nene) and all they "get" is an expiring deal in Miller and Batum.