I think they believe that being around .500 will mean they are competitive and in the AL Central, that may be true most years. So, I think they can/will claim they want to compete, but that must be taken into context that they probably don't need to win 90 games to be competitive, and, if things bring right, can "compete" in the AL Central.
Agreed with your points though. This off-season, they are cutting payroll. They are trying to re-tool vs. rebuild, but these are not the moves a team that wants to win will make. Trading an ace with 2 years left only makes sense if you don't want to pay him. If you don't want to pay him, why would anyone think they are going to spend to actually compete? This will likely continue to be some patch-work roster.