Before I get started here: In every collective bargaining arrangement ever, there are two sides that come to an agreement. Why are management's shitty negotiating skills never blamed? How could you possibly blame stud union negotiators for getting themselves a good deal?
As far as the pensions go: It is completely outrageous that pensioners with their pensions guaranteed by the state constitution are having their livelihoods threatened by an unelected administrator so that the city can pay off their bondholders. Hopefully that gets resolved.
As far as the city goes, KSU has it about right. The city is way too big physically. They need to empower neighborhoods to become independent wards with their own budgeting under a city umbrella or unincorporate most of the city and just let them figure it out.
As for the political leadership: GTFO. The administration of Kwame Kilpatrick and co. was unbelievably corrupt and disastrous for Detroit. To claim that dude was some sort of liberal technocrat or ideologue is wrong. He was a corrupt fool that bilked the city for millions. Read the wikipedia article. It is insane. He is less likable, more corrupt and more ruthless than the Baltimore mayor depicted in the Wire, except it all actually happened.
I get disgusted by the gleeful finger wagging and high minded lectures from people watching a great American city get dismantled brick from brick. The people of Detroit were not the architects of their own destruction. There is plenty of blame to go around, but I have no time for the kind of bad person that puts it on a rough ridin' assembly line worker.