They have a chance if Wallace returns to his DPOY form. Otherwise, he's a liability out there in every way.
This has been discussed over in the NBA General Forum to. Don't let that stop you discussing it here, but just so you know it's not just in here getting very few comments lol. I'll just copy over my post from that thread, since it summarises my ideas: Why don't they have a chance? They have made at least the Eastern Conference Finals for the past two years, and were damn close to retaining the Eastern Conference Championship last year and making a second straight appearance in the Finals. They're not the favourites, but they're probably one of the 5 most likely teams to win. Granted, that is helped by the fact that it will almost certainly be between them and Boston for who comes out of the East. The thing to remember about the Cavs is (unless they're playing the Spurs) they are very difficult to beat over the course of a 7 game series come May/June, because their defence steps up a notch to elite status, and then they can rely almost solely on LeBron for offence. Hopefully this year there will be a cohesive offensive system in place which should make them stronger still and, if they can pull off a Gasol-esque trade, there is no reason whatsoever why they shouldn't be competing for it all come June.