Somebody in the front office needs to be thinking about the future of this team. We may only be 4.5 games out the 8th spot but we would have to outplay all seven of the other teams that are fighting for that spot, to make it. Climbing over two or three teams is a reasonable undertaking but climbing over seven is a fool's errand. Now we win games because teams take us lightly - the teams that don't take us lightly are the one's down at the bottom of the WC with us and they are beating us quite consistently. If we start climbing up fewer teams will take us lightly so we'll have raise our game more and more to keep it up.
We don't have to tank, all we have to do it play the guys that have a good chance of being contributors a few years down the road, when we have a chance of being competitive for the title. Among the young guys we need to play even the ones we have serious doubts being contributors, Len being a prime example. The sooner we establish they are not, the sooner we can move on to other options.
If we are not going to play Chandler and Tucker like we are currently doing, trading them for value is the only sensible thing to do. We are not cramped on the money end so we could work almost any deal that puts them where they'd be happy to go.
IMO, Bledsoe is on the bubble as I believe he could still be contributor from the backup PG slot for 5-6 more years. Still, as AzSteven points out, his injury history is a major concern - if we don't trade him we ought to cut down his minutes to preserve his knees as much as possible. Its not like we don't know what he's capable of. Another question arises because of this particular draft: the top guys in the draft are PG's so if we get lucky we'll be drafting one of them, thus we have to consider whether Bled or Ulis is the better choice for a backup. I really like Ulis but at this point I couldn't pick him over Bledsoe - that could change if we saw him getting a consistent 20 mpg. (Watson's offense is not a good vehicle for evaluating him, so there is that to worry about.) The reason to favor Ulis is that he might feed Booker, Warren and the post considerably better than Eric can/does. That and his age.
Of course, if someone offers a terrific deal for Bledsoe, we need to take it and thank them. He's almost certainly at his peak value now for a contending team.