"No chance?"
MIL had a great regular season. CLE made the dance. KCR advanced one round in the dance, last season. STL has shown they can compete from time to time. The Rays are a small market team that used to be semi-competitive, but have shown they cannot, anymore. MIA is showing some near future hopes but not really at ring-winning level,
To me, the no chance teams (not necessarily smallest markets) are:
PIT, COL, ATH & CWS
Borderline:
MIA, WSH, TBR, LAA (despite the spending)
Straddling the line:
STL, KCR, BAL, MIN
It would be hard to determine which teams should be disbanded, if MLB decided to downsize, but they are more likely to expand to 32 than decrease. Based on market size and city interest, it might be TBR, MIA and maybe ATH, but PIT and COL seem like worse teams.
Imagine a 27 team league with no NL & AL that could look like this:
East: BOS, NYY, NYM, PHI, BAL, WSH, ATL, TOR, PIT
Central: DET, CLE, CIN, MIL, CWS, CHC, MIN, STL, KCR
West: TEX, HOU, COL, KCR, SEA, SFG, LAA, LAD, SDP
The schedule could be more balanced:
12 games vs 8 div teams= 96 games
4 games vs 18 non division teams= 64 games (2H and 2A)
160 games (maybe add 2 games, somehow.)