If you owned the Twins, would you be willing to jettison the Nolasco and Pelfrey contracts? I think Jim P. is first and foremost a business man and I while I could see him calling Pelf a sunk cost, Nolasco is going to be a different story with 36M left on teh table. I think that's a pretty big deal, b/c if they go out and get another expensive FA pitcher and that doesn't work, then what? At one point, these contracts make it very difficult for them to be competitive.
What I do think is that it might be in the Twins best interest to see about aquiring a stud pitcher and/or a stud LF in the high minors. They do have some minor league depth to pull it off, and if it could be achieved without giving up on Sano, Meyer, and Buxton, then I think they would be wise to do it. I'd note though that I think the odds of pulling this off are pretty low given that those pitchers are very very expensive. Their major league trade chips (Plouffe, Escobar, and maybe Gibson) combined with a lesser minor league prospect might get something to a team looking to win now (particularly an LF), but I don't see those guys netting a quality pitcher.