In general yes, but that would presuppose that no player ever improved from year to year or declined when he got old.If you cut guys and the guys that replace them are the same ones that couldn't beat those guys for playing time then you have less talent, simple.
Realistically, the normal growth curve projects first and second year players to improve year to year. How much? Will their improved play be as good as the previous year by the guy being replaced? It's hard to tell for sure. But, it's not as simple as assuming last year's backup will be worse this year than last year's starter.