Apparently they did. Check out this tweet from Adrian Wojnarowski, a very credible source in my opinion:
Prior to Christmas, Knicks turned down a Nets offer of Rafer Alston and Tony Battie for Nate Robinson and Darko Milicic, league sources say.
That's...well...interesting to say the least. Rod and Kiki have said a number of times that they weren't going to take on any new salary for next year to make this year's team better. A deal like this makes sense for both teams because all of the names involved are expiring contracts. If anything, this just confirms that Rafer doesn't really have a place on this team anymore and they are looking to move him. I doubt that they can get a pick for him due to his poor play this year, but if they can get someone who they think will help this year, and won't count against next year, I say they move him.