I think one can be competitive when playing .400 ball. You're playing and giving yourself a chance to win. If you play .400 ball, you're winning the occasional series. That's competitive.
Treading water can mean whatever you want it to mean. Being a 70 win team season after season would be treading water. You need to make a couple of moves and start winning 90. Maybe you just haven't figured out what they are. Or maybe they just haven't presented themselves in a manner you'd recognize.
Tanking is someone who is indifferent to winning at the BL level. These guys finish with top 5/10 picks for severals seasons running while signing a big IFA year after year. Then, all of sudden, they jump from 42 wins to 85 with a payroll of 40m.
I think a blind, one nut monkey can put together a team capable of 55 wins by randomly slamming his little monkey hands on a keyboard. People who win less than that have tried to win less than that.