The Twins and Twins alone decide how much profit they want to make. What other teams decide has no bearing on that. The Twins could decide to make less, while CLE and Tampa keep their models in place. Just because the Twins decide to make less does not mean others will follow. Indeed, I'd argue they wouldn't. Otherwise they already would have. I'm also not arguing the Twins SHOULD do that. I'm stating they can if they want.
So, your question is not really valid, imo. If every team decided to operate the same way, well, IMO, they never will....so I'm not sure why I'd answer that. But sure, their relative ability to compete based on money alone would not likely change at all. It may even go down. But then, I'm not arguing every team should (or even that the Twins should) operate the same way. Indeed, if all you are doing is trying to be like everyone else, you are falling behind, because others will innovate.
So, I answered your question. I'm not sure where that gets us, other than where we already were. We agree the Twins won't decided to break even. That they can't be expected to compete with the highest revenue teams on payroll (which I've said over and over). We agree the key to success is being better at identifying talent, developing talent, and getting rid of it at the right time.