For argument sake what do you do if we are 2 points up on 8th?
Personally, I'd still sell. The simply reality is, this team, as constructed, does not have what it takes to win the cup. And many the of pieces it does have are not going to be contributors for an eventual cup win. Rather than lose those pieces for nothing, whether they get old and can no longer contribute or simply walk as free agents, the Flames have to engage in some smart asset management. Indeed, if the fans and management do want to avoid a decade long rebuild process, they should start it now, while they still have assets that can still return some semblance of value. If instead they fall into a rebuild, like how the Oilers did, then yes, it could be a wholly miserable process.
At this point in time, it's still quite possible for the Flames to turn things around in fairly short amount of time, say 2 or 3 years. Move Iginla, Kipper, and Giordano as well as all the fringe roster players at this trade deadline, get a top five/ten pick in the upcoming draft, and go into next year much younger. Then next season, trade Cammalleri and Bouwmeester if he won't re-sign, get another top ten pick. With some luck, that is to say if Ramo pans out and the prospects the Flames do have as well the ones they acquire in the draft do pan out, they could be competitive by 2015.
But of course, there's no way the Flames would even think of selling if they were 2 points up on 8th. Most likely, that would be enough incentive for Iginla to re-sign, and the owners would likely push for Feaster to be a buyer at the deadline.