Yeah, they should still be able to field a decent to good team. Just depends on the route they want to take. Also, its possible that playing in china might get released from their teams. On the other hand, if they lost Nene to freeagency, then it could be a disastor.
It would be a disaster but they came close to signing him to an extension before the lockout and now, the only teams with cap space are us, the Pacers, the Clippers, Toronto and Houston can probably give him a base salary of around $8 million. With tax teams only being able to spend an MLE of $3 million, I don't see him taking a pay cut to go to Miami or the Lakers. They could probably brainwash him into doing it with the old MLE of $5.8 million but not this mini MLE deal.
Houston would seem like a legit threat. Team up with a fellow South American on the front line to go with KMart and Lowry in the backcourt and you have a good team but I see Denver giving him a legit contract.
As for the guys in China, I just never thought the tattooed up types fit well in Denver. Birdman is the only one remaining and he's a fan favorite. Guys like Battier are more their style.