The hand we are dealt is that free agency is probably the worst possible way we can acquire talent at this point. The best way to acquire talent for a small market franchise is through the draft, and we've done that. The second best way is through trades - for that we need assets, such as youth and capspace. Check and Check. Free agency for a small market team comes last, after you've done all you can to acquire talent via draft and trades and become good enough to attract good free agents (plus the new CBA which possibly will give us more leverage). We have the youth and capspace, now we need to become good enough by getting a new coach and acquiring someone (or two) who is going to be valuable for us through a trade. Only after that, when we are close to being at least a playoff team, would it be wise to start going after free agents. As things stand now, no free agent in their right mind will want to come here, and rightfully so. I don't know if they went after Felton, Miller, or Reddick, but like I said, chances are that if they did go after them, they got the rejection hotline.
Like you said, play the cards you are dealt - last offseason we were the kid that nobody wanted to play with. This coming offseason - maybe, and only of the new CBA gives us the power. Otherwise, I don't see any decent FA willingly signing with the Kings. Think about it, if you were a free agent good enough to have a choice of teams wanting to sign you, what would possibly make you want to join a franchise in turmoil like the Kings. Players only have so many years to play pro basketball. It's hard to expect them to want to play for a franchise with a uncertain future, a bad coach, questionable youth, and inability to attract franchise level players. That's just throwing away years of your career.
The only way we could possibly attract these free agents is to pay them double or triple of what other teams are offering them, but then we become Detroit. Villanueva's bank account says hi.