I'd take a bad FA signing over a bad trade, because at least in FA you don't give up more than cap space.
Take this for example:
http://www.sportsnet.ca/hockey/nhl/maple-leafs-trade-tree-alexander-steen/
They gave up a 2nd and 3rd along with their 1st for the 5th pick; Luke Schenn. If they kept their picks, they could have drafted:
1st round: Tyler Myers/Erik Karlsson (both available, they could even have traded down a few picks)
2nd round: Roman Josi (taken with the pick they gave up)
3rd round: Adam Henrique
Obviously that's a perfect scenario, but even hitting on ONE of those players instead of going all-in on Luke Schenn would have been better than what they did.
They traded Steen for a veteran. They traded Tukka Rask for Raycroft. And because Raycroft was so bad, they needed another goalie, so they traded a 1st, 2nd and 4th for VESA TOSKALA.
Are you keeping track? They gave up:
- Tukka Rask
- Alexander Steen
- Two 1st round picks
- Three 2nd round picks
- 3rd round pick
- 4th round pick
And what they got was:
- Andrew Raycroft
- Vesa Toskala
- Luke Schenn
- Lee Stempniak
- Mikhail Grabovski
And that is BEFORE Burke came in and traded away Anton Stralman and a bunch of picks (including one that became Brandon Saad) to acquire Kessel.
Those veterans were filling holes in the roster as we developed prospects. This is a key part of a good rebuild that even a team like Toronto used (for example allowing Nylander/Marner/Brown/etc more time to grow in lower leagues). We traded surplus prospects, Jarnkrok/Backman/Janmark/etc would do absolutely nothing for this team. The 1st for Quincey may not be a great looking trade, but in truth Quincey was good for us and I think his absence from the team this year is noticeable (Dekeyser-Quincey was actually a good shutdown pairing).
Over the last 5-6 years we've basically traded a bare minimum of prospects/picks in order to stay somewhat competitive while also rebuilding through the draft and trying to develop our prospects in a good way (unfortunately our veterans fell off a little too soon causing us to rush Larkin/Jurco/Mrazek a bit too much).