Navarro - I keep.
Morrow - I decline the option, and try to resign him as a reliever. He can't start anymore.
Melky - I feel like he can be worth the 12-14 it would take to sign him. Defensively, he probably only has 1-2 years left. After that, he's the full-time DH with the occasional OF start.
Happ - Decline and resign as a long reliever or minor league starting depth
Izturis - I keep, decent bench bat, good defensive versatility.
Valencia - keep, if he can be had for less than 3M in arbitration. Good bat, occasional starter
Kawasaki - Minor league depth
Francisco - Gone. Too much swing and miss for that kind of power.
Thole - need him for Dickey, as no other catcher has proven capable of catching a knuckler.
Reyes - Keep, only true leadoff hitter we have, and his contract absolutely makes hum untradeable.
The rest, I agree with.