I do think the best option is to waive the white flag, recoup assets, and make another legit try again next year. Just because you trade off valuable assets at the TDL, doesn't mean you're done competing. Opening up some roster slots and cap could really help this team out.
As I've said in the past, I think there are a couple cap strapped teams that we could leverage a good player from just like we did with Smith last year.
Classic Jake suggestion - Hoglander, 1st, Lekkerimaki
Smith for a 2nd
Acciari and Nieto for late picks
POJ for a 4th
Nedelkovich for a 3rd
Go into next season with $25mil in space. I then target 1-2 teams that are cap strapped in hopes of getting a decent player for cheap. Some suggestions would be: NYR - Kakko; Canadian - Dvorak; Vancouver - Garland or Mikheyev; LA - Carl Grundstrom; STL - Hayes; Calgary - Huberdeau; Carolina - Bunting
Some of those are less likely than others and some more high-risk than others but there are teams out there to target. A lot of these are in the "free start" category where you may see them pick up play in a new city and on a new team. With Vancouver, you could do a handshake type deal with something like: Jake @50% for Lekkerimaki+1st with the handshake deal that after the season, you do Garland for a 4th to clear space for Pettersson (and more). If we clear some space, it allows us to weaponize it a bit.