I'm not convinced that Payton isn't washed up. Not that he's a not a play caller anymore but look at how much talent DA was able to bring in, in just 2 years with the same cap issues that Payton had to deal with. He's still holding on to players like LJH and Trautman, who are not very good.
He thinks he can find diamonds in the rough and save money and then spend up on a few players.. but he's only about 50% on doing that and he's too stubborn to admit when he's wrong and move on.