It is certainly a conundrum... you have no hope of winning a title, you abhor mediocrity, and you can't stomach the thought of tanking. Is there a 4th option?
One thing that the crash and burn of the Bob Whitsitt era, combined with the Jailblazers period, showed me is that this team's front office will never do anything again that will risk the Moda Center not being filled to capacity (or close to). I mean, Paul Allen, when faced with actually losing money, filed bankruptcy on the Rose Garden and was looking to sell the team. The Roy/Oden/Aldridge years convinced him back to the fold, but be sure, he won't tolerate losing money again. He needs that arena filled every night. And he won't do that with a tanking squad. The easiest path to all of this are perpetual mediocrity, first round playoff exits, and teams that are exciting, scrappy underdogs that always give the appearance of "turning the corner" or "being one player away from taking the next step", but they never do. Once in a while, due to a stroke of draft luck or a favorable matchup, they might get to the 2nd round of the playoffs, but the true elite of the NBA always smack the Blazers back down to "their place", and the team never makes the necessary moves to capitalize. They simply count their money from the unexpected extra games' revenue, enjoy the PR boost from the long-suffering fanbase, and stay the course.
Yes, this team should tank. As built, they have no hope whatsoever of competing vs. the new-look Lakers, the historically dominant Warriors, and the win-at-all-costs Rockets. OKC, with their star power, won't be down for long, I doubt the NBA itself will allow it. The issue is, will the fans and the front office allow it? Will trading/losing fan favorites Lillard and McCollum cause irreparable damage to the fan's relationship to the team? Can the front office stomach losing money for 2-5 years while building a new team/culture from the ground up? My gut reaction is no, the team will not do it. Us Blazer fans are stuck with the never ending hype of a team that is always "on the cusp", but doomed to it's fate year after year.
If I were Dame and CJ, I'd demand out now while their value is still high.