I was about to post a snarky response to you starting this thread but I stopped because I can see you're just upset and starting to calm down.
I don't think that worrying about the Yankees does the slightest good at all. It's just not worth it. It's not about winning the division right now, it's about finishing the arduous season and having a shot at the World Series. There are multiple paths to a World Series and not all of them go through a division title.
Yes, tonight was a really disappointing loss. It's frustrating as hell. That said, it's just one loss. The team is well within striking distance and in no way should they hang it up (as the title of your thread implies). They aren't getting crushed, they are losing close games, on the road, late in games.
Yes, it is more than just pitching. Two of the most dynamic players in the league are out of the lineup. The team's closer, who has a track record that matches Papelbon's when on the mound, has missed the entire season, to the tune of 4-5 blown saves and an ERA above 4 for Aceves. They've had dozens of lineups, dozens of center fielders, and their two supposed rocks in the middle of the lineup (Pedroia and Gonzalez) are both having the worst years of their careers. It is likely that both are hiding injuries, partially because the team can't stand to lose them right now. We talk about the pitching, but look at the offense they have had on this roadtrip and tell me they don't have concerns on offense, or that they wouldn't be better with Ellsbury and/or Crawford.
Their hot-shot rookie 3B is down with an injury, so they're starting Punto every day.
I suspect you see all of these things as negatives, and they probably are. What does a glass-half-full person see?
* This team is within striking distance of a legitimate WC spot DESPITE having more injuries than any team reasonably can expect to weather.
* The bullpen is arguibly the best in the league (aside from Aceves). They have a lot of depth and some guys who--to my eye, at least--are doing it legitimately, not because of luck. Andrew Miller and Vicente Padilla have both been exceptional.
* The rotation hasn't been blowing these games. They have been tough enough to pitch through jams and have kept the team in most games.
* Ortiz is having a career year in terms of production and leadership.
* They suddenly have one of the best offensive catchers in the game.
To me, this is a better team than last year's team. Last year seemed like a hapless, flawed team. Their bullpen was two pitchers deep, their team seemed old and slow and disinterested. Varitek and Wakefield were getting far too much playing time, as were Darnell MacDonald and JD Drew. Now, we don't know who should be sent down and the idea of getting injured players back almost poses more problems than solutions... that's not a bad problem to have.
Unlike last year, this team seems like the kind of team that could really turn it on down the stretch and who other teams would not want to face if that happens. They have a winning record on the road and stay in games with the help of their bullpen, which Valentine has been managing very well. Their defense has been professional, if not excellent, and stands to get better with two of the better defenders returning to CF and LF.
Long story short, I wouldn't write the team off just yet. Yes, they have some work to do to turn things around, and the have to win the games that are given to them. At the same time, when this team is up and running they should be able to do some damage. Just don't compare them to the Yankees at every turn. It really isn't relevant to whether or not the Sox are capable of making a splash this year.