I honestly don't know. They only play well enough to win against bad teams and no matter how well they play, they always seem to get edged out by the good teams, or simply thumped, like when they play Detroit.
The young group hasn't seen much time on the floor. Cheeks has only recently discovered what happens to a bad team when he puts Williams, Young, Igoudala and Carney out with Dalembert. I would say it comes down to the schedule and who they play.
So far they have shown no ability to play with a team like the Celtics or Pistons and even demonstrate that they belong in the game.
That said, I don't think they're appreciably worse than Indiana, Chicago, New Jersey or Washington. They probably could get the 8th spot, and I think I'd rather they get a lottery pick. They did this last year, missed the playoffs and got a later first round pick than the would have. They got some good talent with Young and Smith, but they need someone with all-star talent to add to their front line. If there is a player in the draft that's better then the free agents they could get, a pick is what they need.