The Owls were relegated from the second tier on a tense final day that saw Derby County survive by the skin of their teeth.
To add insult to injury, results elsewhere ensured that Wednesday finished at the foot of the table, and former Hillsborough midfielder Palmer has argued that this current crop of players is not good enough to win promotion next term.
Speaking to Football Fancast, he said: “The players who are there now can’t do that [win promotion], in my opinion. The players can’t do that because if they could do that, they wouldn’t have got relegated.
“Darren’s got to be shrewd in getting those players out, getting money in and bringing the right type of player into the football club to get promotion.”
He added: “Out of that current squad, I mean there’s a few that I would keep out the team that played on the final weekend.
"I’d keep Barry Bannan I think he’s given his all for the club, I think he’s a very good player, who is certainly better than League One.
“I have to question a lot of the other players and I have to question a lot of the salaries that they’re earning and I think they have to consider whether it would be a good thing to use this opportunity to clear the decks of players who are earning big salaries who haven’t delivered.
“Simple as that, they just haven’t delivered for the club.”