Flacco's contract isn't hurting the Ravens as much as people think. Over the first 3 years of the original contract, Flacco's cap hit was really team friendly. Since signing Flacco to the original contract, the team signed, Pitta, Jimmy, Monroe, Yanda, Tucker, Koch and Weddle to big deals. That doesn't include locking up guys like Zuttah, Wright, SSS, Forsett and Watson to deals that weren't big but the team thought these players would contribute a lot. They also made competitive offers to Torrey and KO.
Flacco's contract hasn't hurt the team, that's just the perception going around. What has hurt the Ravens is these long term commitments and young draft picks not playing well over the last 3-4 years. The Ravens have been among the top of the league in dead money over the last 3-4 years because of poor contracts. Injuries have hurt as well.
Flacco certainly has to play better and play up to his contract, but he hasn't stopped the team from signing anyone. Boldin was traded because the Ravens didn't think he could perform as well moving forward. Torrey wasn't a guy the Ravens would pay 10Mil for, especially since they have so much success getting close to over the hill WRs who can perform just as well as Torrey and no way they were paying KO LT money without being 100% sure he was the answer there which no one could honestly say.
Seeing Flacco struggle on a huge contract sucks, but the reality is, the Ravens don't commit big money to outside players often and the guys they wanted to keep here they have. Flacco has to play better, but the Ravens were banking on guys like Perriman, Maxx, Brooks, Elam, Davis, Smith, Timmy, Taliafero, Buck and others to really step their games up and be the new era of players to keep the team performing well and that just hasn't happened.