It would be better for the Pirates if they were to spend more than the average team on amateur players than on the major league roster.
I just got through reading an article in the Hardball Times annual about the value of spending on amateur scouting. It made the point that draft and Latin Am. bonuses are much more efficient expenditures than free agents. That's the part that Coonelly, in the arguments he made in favor of slotting, didn't seem to understand. The question isn't whether a draft pick or a Dominican kid is risky, it's whether you can find the talent you need more cheaply by spending it on veteran players. Coonelly ignored a couple of key facts: (1) veterans are very risky, too, and (2) you can pay out a whole bunch of bonuses to amateur players for what one average FA will cost, so even if, or when, most of those amateur players flop, you'll come out ahead if you're good at what you're doing.
Of course, the third course of action is to refuse to spend market prices on either FAs or amateurs. This means you're simply not trying. It's what the Pirates have done up until now and, based on NH's comments in the Tuesday PG, I suspect it's what they intend to continue doing. They just seem to be putting a more sophisticated face on the cheapness.