forget about the exact level of cap-space and remember that having some space gives a team major flexibility, something Portland hasn't had since July 2016
You're ignoring three things:
1) Unbalanced trades. We got guys like Napier and Harkless for free because of having space. We also got an extra 1st round pick which became Swanigan because of cap space.
well, that Varejao trade is pretty questionable at this point. It's hard to keep track of everything like the salary floor, remaining salary, stretch, and tax, but it may be a really expensive 26th pick when it's all said and done (IIRC, wasn't Mike Miller part of that trade too?)
but something to keep in mind is that generally, those unbalanced trades are right in Olshey's wheelhouse. Maynor, Harkless, Napier and the best one: Lopez. Olshey's only bust was TRob. Mainly, Olshey has shown that he can cut into the front of the line when another team is looking to dump a decent player. He's a master at snorkeling thru the bargain bins. And an NBA axiom seems to be that teams are always willing to dump players that can end up on another team as reclamation projects.
and 12M in space, give or take a couple of million is right in the sweet spot for Portland. It's not enough space that Olshey can fuck up things big-time with a huge offer to a Roy Hibbert or a Greg Monroe or a Chandler Parsons or an Even Turner. But it's enough to be a factor in those unbalanced trades, or sign players like Aminu or Ed Davis.
Mostly, that kind of space really ratchets up flexibility. Blazers could use the 12M on a free agent(s) and or trades, then use the 5M room exception to sign another player. Or they could not renounce rights to certain player(s), then use a 9.8M full-MLE and a 4M BAE (although be hard-capped)
Lastly, having that kind of flexibility that some summer space (margin under the tax line) would give would mean the Blazers would be a lot less likely to let a TPE like the Crabbe one expire
maybe I'm off-base, but I actually think this summer' free agency will be fairly pivotal
Wouldn't it be nice this summer not to be worried about tax and hard cap?
which should be a giant flashing neon sign pointed at Olshey reminding him to NOT give out full 4 year deals that don't have team options for the final year