2013 Jays payroll: $118,244,039 (top 10 in the league)
Teams since 2000 who were top 10 in payroll, finished in last place, and didn't significantly decrease payroll (as in falling out of the top 10) the following year:
2000 - Texas Rangers (71-91, 73-89 in 2001)
2001 - Texas Rangers (73-89, 72-90 in 2002)
2002 - Texas Rangers (72-90, 71-91 in 2003); New York Mets (75-86, 66-95 in 2003)
2003 - New York Mets (66-95, 71-91 in 2004)
2004 - Seattle Mariners (63-99, 69-93 in 2005)
2005 - Seattle Mariners (69-93, 78-84 in 2006)
2008 - Seattle Mariners (61-101, 85-77 and still no playoffs in 2009)
2010 - Seattle Mariners (61-101, 67-95 in 2011)
Recent history has shown that continuing to spend a lot after overpaying for a bad team doesn't really have any positive effect. Often, these teams would end up mired in last place again, or at least second-to-last. The one team that managed to follow a last-place season with an over-.500 one without slashing payroll was the Mariners in '09, and even then, they didn't sniff the playoffs. It's abundantly clear that blowing this team up and rebuilding is the right course of action.