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Is it completely impossible that the Ms can compete this year?  No.  With the rest of the division playing near .500 ball, the Ms ARE hanging around.  And having watched a Rockie team win 22 in a row to make the playoffs "possible" becomes a VERY, VERY wide door.
I think is could be argued, even the Twins, 13.5 back at the moment "could still win" this year, (which means ZERO teams are "truly" out of the race at this point).  Though I doubt anyone is going to be placing any bets on teams like Baltimore or Pittsburgh or the Nats.
The "danger" I see is that the *risk* associated with trying to win THIS year are (IMO), extremely, extremely high.  The mantra has been ... we need a "BIG BAT".  Well, if that bat is in LF, the development options for Peguero and Wilson (and Carp, perhaps) are compromised.  Of course, if you dump Cust, instead ... you're replacing a league average producer for your "Big Bat", which means the impact is far less impactful ... (replacing the 50 from Saunders with a 120 OPS+ can easily be argued as significant ... replacing a 100 with a 120 ... not so much).
Moreover, what has to be given to GET the big bat?  The farm is thin already (with so many already having been called up and Ackley arriving any day).  The Ms don't have "expendable" depth on the farm at this point. 
Now Z managed to turn 3 low-level arms into Lee, which he flipped into Smoak.  But, that was an off-season deal, followed by a mid-year dump.  (And Aumont has a 12K/9 rate this year in AA). Who is going to trade TODAY?  If the Ms are still in the race, who is out of it already?
At the end of April the Mets were "out of it" and Reyes and Beltran were being talked up as on the trading block.  A little winning streak in May and now maybe the Mets are buyers, looking for starting pitching.
Do you trade Franklin (+) for ... say Beltran?  Or Taijuan Walker and Robles?
Does trading Vargas or Fister for ... Jose Reyes get you closer to the playoffs this year ... and at what impact to the next several?
One reason to be wary of the fix-by-trade scenario is Z's track record has not exactly been stellar in regard to acquired veterans.  Branyan may be his one "hit" -- (Kennedy this year could be viewed as #2, though I expect this to vanish over the year).  Of course, mostly he's been going after bargain bin gambles.  The only 'money' he spent was on Figgins ...
In the end, I think some of the most vocal proponents for "going for it" in 2011 reveal some of the underlying truth in their need for "immediate" action.  ("Why is Ackley not already here!  We need to acquire a big bat IMMEDIATELY!")  IMO, this speaks to their understanding that without "immediate" help, then no, the team cannot possibly stay in the race until July when the bulk of trading occurs. 
From MY perspective, if the team *IS* to compete in 2011, then they *MUST* do so with the core talent already on the team (plus Ackley, in due course).  A big bat for DH means little if second, third, short and LF remain black holes.  If LROD and Peguero and Ackley are going to adapt, adjust, develop and become productive ... let them.  And *THEN*, if still in the race come July, you've got a much better picture of the team ... and it's true strength ... and its true needs.
Between now and July a LOT can happen.  SPs can hit the DL.  New RPs can arrive and be dominant.  Rookies can blossom or veterans can swoon.  Or, a combination of all of the above.  If the pitching coach has Cust move his right foot two inches and suddenly he hits 6 HRs in 10 days ... the impact on the exact move the club needs to make changes drastically.
In truth, I will admit that I am naturally opposed to the "mercenary" approach to building a baseball team.  But, I think history shows it doesn't work ... long or short term.  Clubs that win almost all have a foundation of locally developed "never played elsewhere" POSITION players, who become the model for the organization.  And I believe the quick-fix mentality of MANY organizations has been detrimental in both long and short term to them.
The Phillies tried the mercenary approach for years ... then sold some (instead of buying), and got really successful when the offense was built around the home-towners ... Howard, Utley, Rollins. Ruiz and Burrell.  The Braves had Chipper, Andruw, Furcal.   (I think mercenary pitching is less of an issue).
But, I see even the good organizations go south when they get addicted to the quick fix over the 'riskier' developmental path.  I think my articles from years ago "Planning to Flail" and "Savior Behavior" are more apt today than when I wrote them. 
The error I see is in the pretense that "going for it" in 2011 doesn't have potential negative ramifications for 2012 and beyond ... that one can make moves for today with no "cost" for tomorrow.  How many YEARS of damage were done when Bavasi decided a couple of big bats (Sexson and Beltre) would revitalize the offense? 
I am worried that an offense that currently is Justin Smoak and a bunch of .600 OPS bats simply has too many holes to be relied upon ... even to generate 3 runs a game on a consistent basis.  There are too many holes.  And trying to put a bandaid on that reality could cost the club ANOTHER 5 years of suckitude.