I would think it's a disappointment. At least to me. The expectation isn't to win a championship, we all know that, but to see gradual improvement.
Year 1 - losing record - lottery
Year 2 - barely at .500, made playoffs, swept.
Year 3 - Expected to be 10 games over .500, and I think expectations are winning at least round 1 of playoffs.
In my opinion, that is very important to me, because at least it gives another incentive for FA to consider coming here.
"hey, every year they improve, and they have a great coach, I would like to think I am the missing piece to get them over the top"