I strongly disagree. By far the worst outcome would have been the collapse continuing and finishing bottom five. The collapse would have been a complete return to the 2016/17 season, which was one of the worst seasons and collapses in recent NHL history. Anything positive built last season would have been wiped out.
Everything would have needed re-evaluation if the collapse had continued in 2016/17 fashion. What would it have meant for Gabriel Landeskog and the rest of this core, after Landeskog explicitly promised the 2016/17 season would never be repeated under his watch? How do you fix a locker-room of core players that has experienced a collapse like that twice in 2/3 seasons? The entire offseason would once again have been about cleaning out the garbage and tentatively going into the season praying it won't happen again...although this time, given it would have hypothetically happened twice in three years, could anyone really trust the core not to let it happen again? Could they even have trusted themselves? Picks don't fix a toxic and broken culture.
Turning it around -- as they appear to be doing -- even if they miss the playoffs is the best thing that could happen to this team right now. Even if they miss the playoffs, at least they aren't going into the offseason on a massive slide that lasted from December 1st - April second guessing themselves and their ability to avoid a complete breakdown. At least the offseason can perhaps be focused on making the playoffs and building a contender out of the positives of this season (a really strong start and hopefully a strong finish, marred by two terrible months of hockey that they hopefully will have completely worked themselves out of), not on fixing an utterly dysfunctional club with a group of extremely frustrated players.
The Avs already have a top pick lined up (thanks Ottawa) -- by far the most important thing for the actual Avs team is to finish this season on the highest note they can, with the ultimate goal being the playoffs (but still not the end of the world, at least, if they finish 1-5 points out), their own pick be hanged.