I don't blame it on injuries. Every team gets injuries, and with the financial resources of the Yankees, you should weather the storm.
Every team gets injuries, but not every team loses their 3/5ths of their starting rotation and has to start Sidney Ponson and Darrell Rasner for long terms; in contrast, I don't think the Rays had a starter on the DL the entire year. Damon has been lost sporadically through the year. Matsui gone for most of it. Posada gone for nearly all of the season.
I don't see how you can lose that much of your starting 9 and not expect problems. And I don't think that Torre would have been able to change that, imho.