No, the team is not bad. It's average or slightly below that.
But it's a team that has been relatively healthy and is leaning a lot on its starters to get sub-average results. And it's a team that has almost no young players of note, no cap space, pending free agents, and not a lot of draft pick flexibility.
So... no, they're not bad. We could get into the playoffs or even HCA this year with a nice run. But we're not well situated for future success, and as a fan who is more concerned with the long run then the next week or two, I consider it to be a bad situation.