Correction: Time will solve everything out...pending greater financial prudence going forward.
I like the Larkin deal, and love the Mantha deal, so I'm more hopeful than before, but there's a very long history of over-signing vets that I'm not going to automatically assume has completely turned a corner. Fingers crossed that they're rebuilding the roster in a financial sense as well.
They've never been in a particularly dire cap situation, and they've always had their contracts sequenced such that ~10+ million was coming off the books in a given year. Nyquist, Vanek, Howard, Kronwall. Then Green, Ericsson, Daley. Then Z and Helm. Then DK and Nielsen. Then Larkin and Abdelkader.
When they've got 10 mil in UFA contracts expiring every year, year after year after year, it begins to look less like chance and more like a systematic approach to how the organization sets up their payables. The issue here has never been whether or not Detroit would have the cap space to be good, it was whether they'd have the players to be good. If they needed to make 10 mil in cap space to land an MVP right now and doing so would make them a legit contender they could do it by packing off Z and Franzen's contracts with a couple assets to cheap teams.
That player isn't available, so that the cap flexibility exists for them to do so isn't important. That doesn't mean the flexibility isn't there.