Developing talent is one way, for sure. I think getting small incrmeental upgrades for various reasons from other teams works as well. Again, with Dallas as the example, they used contract situation to upgrade Dampier to Chandler. They traded Josh Howard and minor pieces for Caron Butler and Brendan Haywood. Really, the only deal they've made to build that team that consisted of developing talent and moving it was the Harris for Kidd deal.
I don't see any reason we can't follow a similar blue print. We signed Miller, traded Blake and Outlaw for Camby, and Joel, Dante and 2 1sts for Wallace. Now, because of their expiring or unguaranteed contracts, we should be looking very aggressively, IMO, to move Miller and Camby to teams looking for either that salary relief provided, or for a vet to come in on one year to make a push. You could add in developed talent of Batum or Matthews in deals, to try for a bigger return. But if you find a way to slightly improve on Camby and Miller, and maybe even Wallace, it makes the original trade even better. Blake and Outlaw for...whoever, instead of Camby. Continue using those pieces.
I love the draft, I love young talent. I'd prefer if we didn't have such a heavy reliance on so much of it. I'd prefer the last 3 spots on the team be rookies of some sort. Taking a chance on young talent. Or maybe sliding in one rotation piece. And with a little flash, you use those pieces along with current players to improve that spot, and replace with new young talent.