They shouldn't be this bad. They have talent on that team. They have no clear rotation, no clear goals, etc. And the reality is, when the owners tell you not to play JR Smith and Kyle Korver because they want burn for the young guys, if you go against their wishes you had better win games, and that just didn't happen.
They could easily be a .500 team right now, but Lue really is that bad. Play the better players more minutes, shorten up the rotation, and the Cavs can be an average team rather easily.
Cleveland has some talent, sure, but it's almost all purely offensive oriented talent. I guess in today's league that is the new norm, but it's not as if they have a particular 'go to scorer' for when things fall apart, so trying to beat teams by outscoring them is going to be difficult. Kevin Love is their best player, and he's a shell of who he used to be, asking him to be that guy is no longer practical.
Sure, Cleveland could probably be an average team with better coaching, but it would be stupid of them to try. They really do need to tank, keep their pick, and start over. Trying to be an average team will just lock them into being an average team. I hate tanking, but given their situation, they don't really have any other good options. Building from the middle isn't going to work for them.
Firing Lue was the right decision here. The Cavs need a good player development coach, not a game/personality manager.