The entire NL West was playing with similar payroll parameters as the Padres were, and they were the 4th best team in that division. Ironically the highest spending team, the Dodgers, was consistently the worst. Success in baseball goes beyond payroll. Having a strong minor league system is a much bigger advantage than cash to blow. The Padres minor league system was always a punchline, and it held them back as teams with similar payrolls, Rockies, Giants and Dbacks, all had more success over the exact same time frame.
I looked back to '98 and since then, the Padres were at, or next to last in our division in team payroll far more than any other western division team. It's not even close...
And yes, every now and then lower payroll teams make a run (heck, the Pods themselves did that in '98, '05 and '06). Teams like the Pirates, Royals, A's and Rays are doing it now...
However, if you look at just the NL west since 1998, the team that won the division was more often the #1 or #2 team in salary in the division. And of course, in the case of the Dodgers, consistently in the top 5/6 for all of baseball...
Since 1998, the balance of the NL West has by far spent more in salary than the Padres. Yes - even the Rockies and Dbacks. And aside from the miracle season of 2001 for the Dbacks, you would be hard-pressed to say that they have been that much more successful than the Pods were...
Anyway - I agree that $$ doesn't always buy wins... However, sustained spending typically leads to greater success.
And of course, farm systems are essential and a great measurement of a GM. Which is why I believe it's far too early to judge Towers...