I agree and I would choose to rebuild but it’s not going to happen.
Rebuilding is tough without guarantees of paying off.
Teams like the Stars and Panthers were able to retool on the fly by being smart and thrifty. The stars had albatross contracts in Sequin and Benn. Then, through the draft and development, they were able to add Heiskanen, Oettinger, Robertson, Harley, and Johnston. And just like that they were good again.
The Panthers did it a bit differently. They used trades to get guys who were undervalued (Reinhart, Bennett). Then they weren't afraid to send important core players for a guy like Tkachuk knowing he is a young unicorn type of player. Furthermore, they've done damage by picking up other teams "trash" like Forsling and Verhaeghe.
The problem with the Isles is that they do neither thing well. They don't draft and develop particularly well. They overpay in terms of assets and AAV for players (Palmieri and Pageau), they overvalue their own players by re-signing them to term (Pelech, Pulock, Mayfield, Cizikas, Engvall, etc.) This year you saw some attempts at this with acquiring Perunovich and Boqvist. However, Perunovich has not been given any sort of leash to develop his game.
Every year has been very tepid in terms of making bold moves to actually become a contender. Even the Horvat trade is an example of this. He is an excellent secondary piece on a team ready to compete for a cup, a 3rd or 4th best forward on a great team. Instead they brought him in to be the 2nd best forward on the team. Half measures all around.
With that being said, I don't think a full rebuild should be in order. Instead, it's time to get creative. You have pieces that teams may covet. You also have pieces (Barzal, Horvat, Dobson, Sorokin, Holmstrom, and some others) that can be a strong core with the right coaching. Let's not forget that if we even had average special teams (which is usually an indictment on coaching), we'd be in the playoffs.
Our GM and Coach are unfortunately bad. There are some things they do well. However, this season is evidence that they are not good enough. Not the right coach, and not the right GM. All the successful teams in the NHL do not fall in love with their players. Lou does. He falls madly in love and won't let them go. Once a GM does this, it's time to go.