I wouldn't call it a collapse (Braves and Red Sox collapsed...), we just forgot how to lay off a breaking ball in the dirt or hit a fastball.
The Yankees farm system pitching-wise is fairly solid. Betances looks like a legit ace, worst case number two, while Brackman and Banuelos have the potential to be number 2's also. There's a reason Cashman would not deal them (or Nova) this trade deadline for anyone that was out there. Behind them, we have a number of guys that can at the very least eat innings - Noesi, Warren, Mitchell, and Phelps to name a few of the second-tier guys. Relief-wise, assuming he's added to the 40 man roster before the winter (otherwise we'll probably lose him in the Rule 5 draft), switch
pitcher Pat Venditte is looking like a legit-swing man who can throw multiple innings from both sides of the rubber. Possible long-man/matchup guy out of the pen in a year or two.
Hitting-wise outside of C (which is stacked for us given Montero/Romine/Sanchez), we're hurting. Brandon Laird is a solid offensive piece at 3B, but he's got nowhere to play. Recently drafted Dante Bichette Jr had a nice first season in the Gulf Coast League as well. 2B and SS are fairly empty, though the low-minors has 2010 first-rounder Cito Culver. Jorge Vazquez makes for a solid 1B option (.262 BA, 32 HR, 93 RBI), but he's obviously blocked. He's possible/probable trade bait, though he is a bit old for a prospect at this point. In the OF we have standouts Slade Heathcott (first rounder in 2009) and Mason Williams (who wrecked single-A ball), but outside of those two looks fairly thin.
As for Granderson: Do I expect him to hit 40 homers again? No. But Long did fix is swing against lefties (as evidenced by his splits) and he's still young enough to keep things moving. The issue I saw was Girardi played him every single day down the stretch for the most part, and I think fatigue finally caught up with him. Should be back in 2012, but I'll admit needs to be a better two-strike hitter. He K'd
way too much.
Long story short: pitching-wise, not bad, there's some potential here. Hitting-wise, outside of C it's going to be a while before we have another Cano, or even Gardner-esque player to add to the major league roster. My prediction? We'll keep buying hitters (though I'd argue almost zero chance of them acquiring Fielder, Pujols, or even Reyes. Can't trade Tex with his contract, and I think they want Montero DH'ing full-time next season (barring a trade). If he's traded, then I reserve the right to amend this

).