I have a different short-cut, which is...
IF you have a good Draft & Develop team: It may be possible to avoid my "second 10 years" for Model #1 (no championships but good for the prior decade; second decade = also-ran never making the playoffs, but trying with FA's or other methods.) By having some talented players coming up IF the farm system is maintained (not having top 10 1st rounders coming up but other prospects that were developed...), another pathway is provided to build serious play contending teams.
But if a team is NOT good at drafting & developing, basically an empty farm system, then (A) IMO, there's no choice but to follow Model A in order to first repair the Farm System and then, hopefully, turn Model #2 into Model #1, or better... Including a Championship or two. But (B) An empty farm system means trying to maintain a playoff caliber team that no longer is playoff caliber, with nothing in the farm system to support being a playoff contender, is a fruitless and maddening exercise. With the most likely outcome a string of less than .500 teams, no years making the playoffs, and worse then losing 110 games each year for 5 years straight. Again, IMO.
To me, it ALL depends on the farm system... if a team maintains it, it opens up multiple pathways, not just one (lose 110 games for 5 years straight to get a good team...).
But if there's an empty farm system, I have no interest in trying to hunt 85 wins in a string of 75 win seasons.
No thank you.