They're contenders but they won't be able to generate enough offense to get out of the West.
And they need to avoid the Spurs at all costs.
Everyone needs to avoid the Spurs at all cost but outside of the Mavs nobody but the Grizz have beaten the Spurs in the playoffs. I would say they match up better vs. the Spurs than the Warriors, Clippers, Blazers and anyone else except maybe the Mavs.
As for their offense they've been able to generate enough offense in the past to make multiple deep runs. Deeper runs than the more offensive gifted teams. Also their offense this season seems a lot less problematic than past teams.