Four things at play:
1. Pretty much every team overspends. Every team. It creates a market inefficiency. The middle tier gets tightened and a few players get pushed to the top but most get pushed to the bottom.
2. The Dolphins had open positions, and, therefore, opportunities to play and build up their resumes to improve their tax bracket.
3. The lack of a state tax means players get more bang for their buck playing in Florida.
4. Whether or not you like McDaniel, he's a players' coach. The players love him. They love not having to rein themselves in. Human nature. And I suspect parting with Fangio might have even made him a more popular coach for whom to play ... don't keep the guy who is raining on the parade.
All that, and the Dolphins should be an average team at the very least even with the guys that departed and there's a lot of attractiveness around the organization.