Executed to perfection

So the Twins decided to get rid of JJ Hardy for next to nothing (which is great, because they were going to non-tender him, apparently) in order to sign Tsuyoshi Nishioka.
They didn't use any other money to shore up any other positions, letting all of the bullpen go, as well as 2nd baseman Orlando Hudson. But Joe Mauer re-signed! So obviously this is a rebuilding year, right? Plenty of time for prospects to develop.
The deadline came and went without the Twins doing a thing, because they were contending in a rebuilding year (6 games out!)! Great job! Instead, they went on a losing streak, gosh darnit and are now putting players on waivers. They will likely not get anything in return for Jim Thome or Jason Kubel, because there isn't any real competition for their services if any player is claimed.
I find it difficult figuring out where things went wrong in Bill Smith's plan. Sounds like everything went exactly as expected. Handshakes and raises all around!