Possibly but way too early to tell.
This team made it to the 2nd round last season after not making the playoffs the year before. To me, its still on an upward trajectory until proven otherwise.
"Lebron back to CLE" Year One, the East is seemingly wide open. I have no issue with a team who was a conference semi-finalist last year making a run at the conference title this year. Especially with how the East currently stacks up. They've built out their roster and brought in guys like Pierce & Humphries on relatively short term deals & short money. Heck, you gotta build out your roster anyways and they've done a good job of that this offseason, IMO.
Now, if they bow out in the conference semis again this year, then maybe you can start taking treadmill of mediocrity but that might even still be too early. If they resign Nene for big money following '15-16, then I can see the treadmill working at hand.
They're not killing themselves going forward. Looking at their salary cap situation a few years into the future, there isn't a lot of dead money here and they have their 2nd best player (Beal) under cost control for another couple of seasons. The one big decision they have looming is what to do with Nene. However, if they let him walk, that's going to free up a good chunk of money in a year when the cap is expected to bounce up significantly due to the new TV deal. The Gortat deal alone shouldn't kill them.