Not saying that I completely advocate for it, but I can see where Holland/the FO/whoever might shift to a more "neutral" approach going into next season that doesn't really derail a rebuild.
-This team does seem better than its record indicates, especially when their D is at or near full strength
-As OP mentioned, keeping the team somewhat intact and adding Karlsson (or maybe even Duchene/Stone/Panarin) probably puts them in the playoffs, which might be worth the risk to them
-They still have 10 draft picks (11 if by some miracle Robbie Russo plays 30 games for the Coyotes...) for this June (which includes their first that will likely be high and they have 2 2nd rounders, one of which will likely be in the mid 30OA range)
-If they miss out on a big free agent, they could always add a couple vet pieces on 1 or 2 year deals that would be easily moveable at the deadline
-If they are still far away from the playoffs next season, they can easily slip back into draft pick stockpiling mode as Green, Daley and Ericsson are all expiring and can be sent out as rentals, Helms full NTC can be voided after this season if they miss the playoffs, and any of the hypothetical short term vets they add can be put on the market as well
That would mean that free agency needs to target a top guy (IE Karlsson/Duchene/Stone/Panarin/etc.) or some short term guys that could be turned into free assets in the next couple deadlines... NO in between... So (ala Stamkos/Nielsen) if they miss out on Karlsson on D, no panic long term over payment to an Edler or Myers. And also still leave space open on the roster for Svechnikov and Hronek to be on the NHL roster, and for guys like Zadina/etc. to compete for a spot.