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Making these kind of calls is VERY situation dependent.  Yes, Z has undone "some" of the damage - but certainly not all of it.
Silva remains an oppressive mistake Z is paying for, both in length and dollars.  Johjima also has another two seasons at a high price.  With a $100 million payroll, you're talking about 20% of your expense going to a pair of guys you HOPE you don't need.  That's just the installed base of inherited bad costs.  (Imagine you took a job expecting to work 40 hours and get paid for it, but were told that because the guy you're replacing was  moron, they only have money for 32 hours for the next 2 years).  But, that's the reality of GMing.  Every new GM is saddled with problems made by the old GM, and it takes TIME and effort to deal with those.
That said, it's pure conjecture at this point whether Z's eye is REALLY that much better than Bavasi's.  One of Bavasi's first acquisitions was Ibanez.  The critical calls for the future are going to be whether guys like Bill Hall, ($8.4 million in 2010), Snell ($4.25 million in 2010), Jack Wilson ($8.4 million in 2010 - if they pick up the option), work out.  Snell is cheap enough that failure IS an option.  But, what if Hall and Wilson turn into the next Vidro and Johjima? 
Hey, I like the approach.  I approve of most of the decisions so far.  But, while Branyan was a home run, and Gutz a triple, (assuming you appreciate his defense as I do), and got a single to right from Sweeney ... Z fanned badly on Cedeno, grounded out on Chavez, and just popped the ball up (so far) with guys like Hall and Wilson. 
Matt has pointed out that Z is very fond of guys who see lots of pitches.  That's good news.  But, it certainly hasn't translated into a significant improvement in walks.  The club remains 14th in walks, and it is likely Griffey will finish the season as the team leader in that category, (while his return isn't so likely).  The offensive hole that Z began with was REALLY deep, and fixing it is not a case of bringing in one good slugger, (Branyan was one good slugger). 
And, of course, we haven't seen how good Z is in regards to negotiating extensions with guys he brought in on the cheap.  Basically, the job of moving ahead from where the club is today is massively more complex then just bringing in a couple of big bats.