We had a great prospect pool on paper, unfortunately by the time they got to the Flyers most of those prospects were suspects (i.e. it wasn't development that deep sixed Rubtsov, etc.).
He didn't clean up a lot of cap room, G, Voracek, Ghost and then JVR pretty much ate the cap.
Hextall never truly committed to rebuilding, he traded Kimmo at the end of his career, Coburn rather than resign him, the other moves were minor (McGinn, Rinaldo, Cousins) or treading water (Streit for Fippula). The major rebuilding move was the Schenn trade, then he took that money and signed JVR, a 29 year old forward to go with 29 year old Voracek, 30 year old Simmonds and 31 year old G. When you make a move like that, you're committing to winning now.
The organization has been schizophrenic for a decade, I think this is the first year where a HC/GM has been honest about not competing. It matters, because when you publicly admit that you're rebuilding, you can take long-term moves without worrying about blow back from the fans and media (or the FO).