Probably a little of both.
We HAVE come a long way
- we may not 'expect victory' but for me (and yes, I realize that maybe we've been spoiled by our current postseason eligibility streak), I pretty much assume we'll hit the 6-win mark every season
That said, the fact of the matter is we'll NEVER have the talent and depth the Ohio States et. al of the world have
- therefore, even if we're leading by a zillion points with 7 seconds left, unfortunately said fact will catch up with us more times than not
Edit:
Another sign that the program is improving?
Let's not forget that Vandy was sick of losing to our Cats so they booted us off their schedule
- that's gotta be a first! 
Edit #2:
The scheduling of Notre Dame and Stanford shows confidence by the powers-that-be in our team
- otherwise, we'd follow Vandy's lead and face powerhouses like Idaho Community Tech Institute for the Blind