While making the playoffs is very unlikely, and probably not even desirable, at this point, it can't be ruled out.
Two of the teams ahead of us underwent a major makeover. Nuggets lost Camby without compensation, and Warriors lost Baron, though they were able to sign Maggette and some other guys. It wouldn't be a surprise, if both teams slipped some this year. Additionally, Dallas and Suns took steps back last year after their trades, and might do so more this year, with the growing age of their core. Clippers might have gained, since Brand didn't play much last year anyway, and BD is a huge upgrade at the PG spot.
Sure, we too lost Artest for little immediate gain, and this shall be the first year in a long time, when we shall be without Bibby for the whole year. If we keep our focus on the young kids, as we should, we are also likely to slip. Just that the fight for the playoff spot doesn't seem as far fetched as it did when the offseason started. We shall need a huge helping hand from at least couple of teams above us.
If we are in the fight for a playoff spot, I hope we do get it. Chances of a high lottery pick are very remote at that point, and there isn't much difference between a 13th pick and 16th pick.