Let's take it a step further. Let's say that we make it to the second round, but we ultimately lose in 6 to Toronto, who ultimately looks a step above us.
Let's also assume that we don't get any significant free agents ( no Griffin, Hayward, Milsap, Ibaka, Noel, etc.) and neither Chicago nor Indiana will trade us Butler or George for a fair price.
What do we do then? Do we really run it back with this same basic team and extend IT long term with this flawed roster that has no chance of truly being anything more than second round fodder?
What if Bird came to you and said, "We're going to do everything in our power to keep George long-term, as he's been the best player in Pacers history. But we're willing to give up Turner to improve the roster, so Turner, Jefferson, and two first round picks for IT and Horford?"
At that point, you have to at least shop IT and Horford right? I just see no real point in running this same basic team out the next several years with extra rookies if we're not going to get an upgrade somewhere.