We're not going to get anywhere this year, but unless Danny does something entirely out of character, the rebuild can start in earnest this summer.
Compare our situation to say... Orlando, once Dwight walks this summer. They're going to want to rebuild, too, but they're still going to be paying big $$s to Turkoglu and Baby Davis and Jason Richardson and Chris Duhon - not a one of those guys being someone you want to build around, and they're all one the books for a while.
We'll have cap space, a couple first-round draft picks, and a young, All Star point guard on a reasonable contract (to either build around, or trade for value). And, Pierce could either be amnestied or traded (for value).
We aren't going to have to go through that whole period of waiting for bad contracts to come off the books before the rebuild can begin in earnest. Or actually, we're kind of going through that right now.
So yeah, I'd say there's a good chance that we may not be able to play .500 ball for the remainder of the season; we have lost so many bigs to injury, and when they're healthy they aren't playing well regardless. But, we're not in bad shape, because we're in a pretty good position to hit the "reset" button and start over, clean, this summer.