Yes, they're absolutely contenders.
I'm not as concerned about the linebackers as some are; I think that Travin Howard makes a huge jump this year; he was playing big snaps down the stretch and was great in coverage. Kiser should at least be a serviceable backup and special teams player. Floyd could definitely play a good number of snaps inside as well, and you still have Ebukam, Okoronkwo, Lewis, and Polite as the edge rushers who could definitely play a big role this year (or, at least, pass-rushing for Lewis and Polite). Keep an eye on Rozeboom as well; I think he takes Reeder's job.
Offensive line should be interesting, for sure. I honestly think that Edwards, Corbett, Evans, and Noteboom take a huge step forward in their development this year (yes, I think Noteboom will be healthy). Anchrum is another name to note, as I have him taking Allen's job as the interior line backup. He was a good tackle at Clemson whose skillset should translate well to the interior. Havenstein is the X-factor here; if he's healthy and in-shape, we'll have an excellent pair of bookends with him and Whitworth.
Running back is an interesting situation. I like both Akers and Henderson, and I think that they split carries at first, as Henderson is more of a big-play threat than Akers (and if Henderson can improve his blocking, look out). If Brown bounces back, we could have three good-to-great running backs.
Kicker is what concerns me the most, but we have three options who look good enough on paper. I think Sloman wins the job, but right now, it's a three-horse race.
If the kicking position is good enough, I say that we go 13-3, and I can see any game we play as winnable. With a much improved run-stuffing game, we'll force the Whiners and Hags to go to imperfect passing games, where we'll beat them with a great cornerback and safety group, along with AD and a solid pass-rushing group. With a better running game, we'll force them to honor it, and therefore, open themselves up to a deadlier play action and screen game than we had last year.