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It shows how much space every team can save by restructuring. On the left is where teams currently are, the mark in the middle of each line is how much space can be created without even negotiating with players, and the last is how much can be created if they added void years to every contract to spread the hits even further.
Every team in the league can open up more available cap space than we can by using the same strategy we do, but they don't. They start from a better position, maybe restructure a contract or two for actual key players, and then position themselves to be in the same spot next year.
If there was a chart called cut/trade capacity to show how much space could be opened up by clearing out bad contracts, we would look tremendously worse.
So basically what this chart illustrates is what we already know…most teams operate utilizing primarily current space, we operate using a disproportionate amount of future space.