And now the cycle is complete: Since Isiah Thomas took over the Knicks’ front office in December 2003, every other Atlantic Division team has rebuilt their nucleus and is moving up. Meanwhile, the Knicks look increasingly clueless.

What completes the cycle is the rise of the Philadelphia 76ers. “Rise” may seem like rosy language for a team that is 28–33, but consider this: Their point differential is even, which suggests that they are better than their won-loss record indicates. The Sixers have won 12 of their last 17 games, and they just won two out of three on a western road trip, including an impressive comeback win at Phoenix on Saturday night.

What’s particularly notable about the Sixers’ hot streak is that it comes in what should be year one of a rebuilding effort. It was mid-season last year that the Sixers parted ways with the previous nucleus, guard Allen Iverson and forward Chris Webber. Although they had a point guard in Andre Miller and a potential future star in forward Andre Igoudala, most prognosticators were forecasting the Sixers for 50 losses or more.

The rebuilding seemed to shift into high gear early this season when the team jettisoned longtime general manager Billy King and hired Nets’ front office veteran Ed Stefanski. Swingman Kyle Korver was traded to Utah in what seemed to be a salary dump. Speculation swirled that coach Maurice Cheeks and starting point guard Andre Miller would be gone by mid-season this year.

Instead of blindly adhering to the franchise rebuilding textbook, Stefanski chose to examine his team and reach his own conclusions on what needed to be done. He noticed that although Cheeks has a spotty coaching record — only two of his six previous teams have finished over .500 — he had this year’s crew playing solid defense. The Sixers are one of only two sub-.500 teams in the top 10 in Defensive Efficiency (points allowed per 100 possessions). Last month, Cheeks received an contract extension.

Miller’s case was also vexing. Not only was he, then as now, an experienced NBA point guard with a good track record, but his trade value was enhanced by his contract. Miller’s pact would expire after the 2009 next season. As if all of that wasn’t enough reason to shop Miller, his heir apparent, third-year guard Louis Williams, looked ready to take over the starting job. But Miller throws a better lob pass than any other guard in the NBA (Jason Kidd included), and he can fire a pass to the rim off the dribble from half court.

This is an especially useful skill for a team full of young jumping jacks. Igoudala, second-year forward Rodney Carney, and rookie swingman Thaddeus Young can all elevate, as can veteran center Samuel Dalembert. Miller has them keeping an eye on the rim at all times. During the Sixers’ 106–80 rout of the Clippers in Los Angeles on Monday night, Miller seemed to throw some alley-oop passes just to see if anyone was paying attention. One errant toss careened off the backboard — and the noggin of Clipper pivotman Chris Kaman — who then looked at his opponents with a “you guys are nuts” expression. But it wasn’t out of character for the team: The Sixers had already scored on more than 10 dunks by that point in the game.

Korver’s departure has opened up playing time for Young, and the rookie is making the most of it. His scoring numbers aren’t awe-inspiring, but his efficiency and hustle are. Since February 1, Young has averaged 10.9 points per game, but he’s shot 58.4% from the field. In his last five games, he has had 12 steals. He wasn’t credited for a steal in the third quarter of Monday’s game, but this play was indicative of Young’s game: He snuck up behind a Clippers player along the three-point line and dove for the dribbled ball. Young then knocked it away — but into the hands of Clippers forward Al Thornton near the baseline. Thornton took one dribble toward the middle when Young dove again, this time knocking the ball to Igoudala, who triggered a fast break. Young was trailing on the play when Sixers guard Willie Green was fouled while finishing the break with a layup attempt.

The road ahead for the Sixers bodes well. Their upcoming schedule is soft, which should enable them to secure a playoff berth, and with their defense, they may even make life a tad difficult in the first round for some unsuspecting higher seed. In the offseason, the Sixers will have a little bit of cap space to shop. They could use another reserve big man, and they urgently need to replace Korver’s long-distance marksmanship. Philadelphia is last in the NBA in three-point shots attempted, and made, a game this season. They will also need to sign Igoudala and Williams to long-term contracts, and with that, the new Sixers will be set to vie among the Eastern Conference elite.

The Sixers have rebuilt with surprising speed, but that’s a testament to what can happen with a plan and a bit of roster flexibility. Sooner or later, the Knicks will have to figure that stuff out at Madison Square Garden.

mjohnson@nysun.com