I think you're right. The Twins are 8-2 in their past 10 games and only 8.5 games out of first place. There's still a month before the All-Star break to make up more ground and obviously the competition for first isn't too tough.
Unfortunately it's unlikely that Diamond keeps pitching the way he has, especially as teams get another look at him. Walters is already starting to flounder.
On the other hand, Liam Hendrik's has been pitching great in AAA after some adjustments. In his last two starts he has 15.2 IP, 7 H, 0 R, 3 BB, 18 K. Liriano, who is pitching today, has also been great in his last two starts - 12 IP, 7 H, 1 ER, 3 BB, 17 K.
Mauer and Morneau appear healthy enough for now, and if that keeps up, and the Twins pitching is able to stabilize, bikeboffitt might just be right. It's a long shot, but it's not as impossible as it seemed just weeks ago. The Twins, as we all know, have a knack for closing strong.