I'm with Z in that we can't pass a true judgement until the year is over. However, we are on this site because we look at micro and macro levels. I think it is OK to give some idea what is on our minds.
If i had to chose a letter, it would be D, but I think we are somewhere between C and D. D states "a problem" and I don't think we are at problem status for a 1st year. If you took out problem and replaced with improving, then I'm down with D 100%.
Last year we were confused, lost, out coached, and had little talent. I see little of that this year. The kids and the coaches are putting it together. I actually see a team forming and while it is coming slower than what I am used to, it is progressing none the less.
I mentioned in previous entries that I won't be buying season tickets next year. Well, if the team gives a better 2nd half of the season (or my wife offers me birthday sex), then I may be compelled to change my mind.