I don't think it's SO bad, though it could get a lot worse if Kemba leaves in free agency in a year or two when his contract is up.
Kemba Walker and Dwight Howard (yes, even now) isnt' the worst basis for a decent playoff team, they just need pieces that actually work well around them.
They way overpaid Batum, whose jumper has never really become consistent. MKG doesn't appear to be developing into more than a bench hustle guy. Kaminsky is an OK reserve big but nothing more.
Jeremy Lamb is an OK scorer to have off the bench, but won't change your life. Cody Zeller can't stay healthy and he's a limited player in today's league.
If you had Kemba, Dwight Howard, and a bunch of solid 2-3-4 type players who can shoot a bit, pass a bit, and defend a bit, I could see that working. Provided everybody stayed reasonably healthy.
They've really been hurt by their inability to identify above average players in the draft.