Until Horvat signs there is simply no way to know which direction Lou is planning although I strongly believes he is going all in. Win or bust. Cynically put, he is 80 years old and will most likely no live to see the end of the deals he will be signing this spring or offseason, and as such he does not care what the future holds.
With the Horvat trade he signals he thinks this team can win and will be looking to add more. He knows that he might not have his contract renewed if they fail again, and is going all in and push the problems ahead of him like he has done in the past.
If Horvat signs, that eats most of the cap room this team has. There will not be enough to sign Mayfield and Varly as well, at least not both. The only way that is possible is some wizardry in dealing the likes of Bailey and Palmieri, which will cost even further assets. In that case we are left with an aging team of vets on horrible contracts with no prospect pool at all.
Best case scenario (I'm assuming the have no chance of winning the Cup) is probably to have Horvat sign, then watch the team go on an almighty slide forcing Lou to sell off assets like Mayfield, Varly and whatever else he can get assets for and recoup what he gave up in the trade, and hopefully more. Then slide so far they win the lottery and get Bedard
. Retool almost complete.