I'm not a big hockey fan, but based on the makeup of the two teams, I actually should not have been that shocked.
The fact is, Washington, for all its talent, is an undisciplined, unstructured offense uber alles team with no real defensive identity. They're basically the (early) Dallas Mavericks or Phoenix Suns of the NHL - all offense which makes for lots of points and wins in the regular season, until the playoffs come around and you find that what REALLY wins in the playoffs is grit, toughness, DEFENSE, and clutch play. Add to the fact they don't really have an offensive system and just rely on talent and team speed (I was always wondering why hockey looked so damn unstructured - actually, it was just the Caps) and you have a team that will not, as currently constructed, have any real playoff success.
I'm no expert by any means, but as a sports fan for a VERY long time, I know what the playoffs are, I know what generally wins in the playoffs, and I knew DAMN well that the Capitals weren't playing it, and they haven't been playing it since that team was assembled.
Basically, the following things need to happen in order to avoid consistent playoff failure, though any and all moves outside trading Ovie should be on the table.
Trade Green (he's a bad defender who gets a pass because he can score)
Trade Semin (most overrated player in the game, incredibly unclutch and generally an idiot)
Fire Boudreau (terrible coach but happens to have a team that a chimp could coach to a #1 seed in the playoffs because they have SO MUCH offensive talent
Rehire Boudreau and fire him again This guy has three, yes three Game 7 home losses in the last 3 years.
In two of those series his team had a 2 game lead in the series.
He is the worst playoff coach I have ever seen on any sport on any level, period.)