Yeah, it looks really bad and it might be bad all season. While I am not sure I buy the salary limits, if we accept they couldn't spend much more than the salaries in front of them this season, counting on improvement and better health to improve their hitting. They have many guys--Miranda, Lee, Julien, Larnach, Wallner and Jeffers to name a few--that could excel and thrive or burn out. I think it is time to find out about these guys. So far, no one has thrived and a few have stumbled, but the real culprits have been the most established players--Correa and Buxton--have been the biggest problems in the offense.
I think this is the last chance for this manager and many of the players and if they fail major changes are in the offing probably with a mostly new front office. Rocco Baldelli has followed the blueprint of the front office and after initial success, there has been more disappointment than progress. They haven't been able to put together a sustained offense and they've acquired players with injury histories who surprise! have continued to have disabling injuries.
So, circling back to the comment by @nicksaviking, I think the minimal change was a gamble worth taking (if the "salary cap" model is to be believed). It's early and there has been close to zero reason to be optimistic and the front office reliance on guys who aren't athletic and have little speed has shown up in below average defense and base running. The hitting will almost surely improve, but it might be too late.