Teams don't have to be good to have a rivalry. However, there must be some intensity to the games.
Detroit v Colorado has been just a game for a decade now. The intensity, the passion, the hate is long gone. Completely different lockerroom, completely different attitude on the ice. It is just another game.
The NHL watered down the term rivalry when they started calling any divisional matchup a rivalry. There are very few true rivalries left in the NHL.
Look at Penguins v Capitals or Penguins v Flyers.
Closest thing Detroit currently has to a rivalry is with Toronto.
The last true rivalry Detroit had was with the the Penguins following the back to back cup finals. That being said, the rivalry is pretty much dead. Sure there is always a little excited when the teams play but that is mostly the hype surrounding the Pittsburgh superstars Crosby, Malkin, Letang, Kessel and not because of an intense passion/hate between the teams.