Why have a save button if changes won't persist?

Not applicable

"You have deleted or renamed some items. These changes will only be persisted if you save as a new revision. If you save to the current revision, they will not be persisted. All other changes to the API Proxy will be saved in both cases."

What's the point of having a save button, then..?

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The deletions or renames won't persist. Other changes would. Definitely could be clearer/more intuitive.

Whenever I rename or delete existing resources I habitually save as a new revision, so I haven't seen this in some time. Worth revisiting to be sure.

So does this means if you change something on an API proxy, which is already running in an environment and if you save it, it is automatically deployed to the environment.

Thats right @ravi kalla. As long as there are no deletions or renames, the revision gets deployed automatically while saving (if it was already deployed). If you are working on a revision that is not deployed, clicking the save would just save the changes. You will need to explicitly deploy that revision. Hope this clarifies