No, this is incorrect. Blake is clearing cap space to spend on another veteran target this off-season. He flat out refused to concede that the Kings need more than a piece or two to get back into contention. The willingness to trade Anderson-Dolan and the Akil Thomas pick in exchange for six years of Pacioretty, then the subsequent signing of Kovalchuk for three years gives every indication that he still (mistakenly) believes that this team can compete for the Cup.
His plan is to clear enough cap to make a huge Panarin-shaped UFA splash this summer. It's not a plan for the future at all.
He may get Mr. Magoo like lucky by failing his way into a top three pick because of his poor management, but it is not by design. Unleashing a healthy Vilardi, Panarin and an instant top offensive threat first round pick is the only way that will work, but the holes up and down the roster, especially on defense, will prevent this team from contention. Sure would be more fun to watch though.