The Nuggets won't get any better until their biggest fundamental flaw is fixed.
That being that this team simply can't shoot.
No one on this team is a threat from beyond about 18 feet and the blame for that lies solely on Kiki. 2 guard was the weakest position on the team coming in to the year after he let Jon Barry go, leaving Vo Lenard as the only real outside threat. Lenard tears his achilles in the season opener and now they've got nothing. What's worse, they've had nothing for nearly half a season now and Kiki has done nothing to address it.
I'm not talking about a blockbuster trade for an elite 2 guard (though I'm not opposed to the idea at all), I'm talking about bringing in any available player who can drain an outside shot and give them some minutes at the 2. It still hasn't happened.
So long as the Nuggets are solely an interior team, opponents will continue to pack the defense inside, cutting off driving lanes, bottling up post players and daring the Nuggets to try a long shot that everyone knows they'll miss at least 7 times out of 10.
As for George Karl, I'll pass. The guy has never won squat regardless of the talent level of his team. He was the one who led the Sonics to being the 1st #1 seed in NBA history to get knocked off by a #8 (the Nuggets, ironically).