There's no way with his job on the line Fitz goes with Knight. Zero chance. He'd go get Talbot or Gustafsson in free agency before he did that. This is a team who should have their window open/opening, not a developing ground for a guy who has been pretty average in the AHL.
NJ, I would say is a notch lower than say Toronto, Edmonton are in terms of needing a goalie now. NJ still has a runway, but really want to take advantage of Hughes cheap contract for the maximum amount of time that they can. Plus want to maximize the best remaining years from hamilton and Meier that they can.
They can handle the cap hit, but is it realistic, given the past couple of years that Knight has been through to expect him to be your bonafide #1 guy next season? Probably not. Potential is there, but so is the risk, given that he's at a $4.5 mill cap hit not $2.5 mill.