Rays fans still aren't coming out to support the team.
The Yankees will continue to be competitive but they won't win another World Series until they actually get some pitching.
Pettitte and Moose will be gone soon; Pettitte is already on the decline; Moose's 2008 season is nothing short of extraordinary when you look at his 2007 season, but who knows how long he can pitch at this level. They are both FA after this season but I expect them to be resigned, unless Pettitte retires, Moose should be back.
Wang is solid but he isn't an ace and he cost the Yankees big time in the playoffs last season and now he'll have a serious injury to recover from.
Based on stuff alone, I think Hughes - like Buchholz - will eventually be a good pitcher, maybe even the ace everyone thought he would be. You just never know with young pitchers though, and it will take time. I think the Yankees were just flat out wrong about Kennedy - he put up very good numbers in the minors but he fell apart in the majors. He does not have the raw stuff to get by if he can't locate.
Joba is the key - not CC or whatever FA pitcher they sign. It's Joba, because he can be an ace and he costs nothing. As a fan of good baseball I hope the Yankees stop jerking him around and make him a starter where he will be more valuable; as a fan of the Red Sox I hope they continue to be clueless about what to do with him and end up leaving him in the bullpen for 1-2 inning stints. Disclaimer: If their knowledge of the situation tells them that he's a bigger injury risk as a starter then that's their prerogative - I just know that he's a lot scarier pitching 200 innings a year as opposed to 70.
I fully expect the Yankees to sign CC and make a run at Teixeira (his hometown O's will be in the mix for Tex as well). These moves will certainly help them, but they'll still have an incomplete pitching staff.
CC
Wang
Mussina
Pettitte (if he returns)

(Hughes/Kennedy)
Yankee pitching will be a liability until they can prove otherwise.
To Triboy - they traded Soriano for A-Rod. We all know about A-Rod's issues in NY but he isn't the reason they haven't won anything recently, it's pitching and defense - Soriano was capable of neither.