Great post. I agree with most everything you've said. I don't think things are as dire as most fans.
You mention that this team needs 5 starters excluding depth. RDE, ROLB, MLB, #2 WR, and a Center. If we can get 2-3 in free agency, then this team is on its way.
The Chiefs can get a starter at any of these positions with the #3 pick. I think they can get a starting center in rounds 2-4 of the draft.
So if the Chiefs get 2-3 free agents, address the other needs with the #3 pick, and get a center with the 2nd or 3rd rd pick of the draft then they will have improved dramatically.
The big focus for this team needs to be improving the pass rush and solidifying the OL. A lot will depend on whether the team moves to a 3-4 defense. That could change everything. But assuming we stick with a 4-3 this year, then we aren't that far away from competing for an AFC West title.
I think the Chiefs are forced to stick with a 4-3 this year. They don't have the personel to run a 3-4 yet. Plus they have a lot of money tied up in Dorsey who really doesn't fit in a 3-4 scheme IMO.