To re-iterate, no it won't. The power lead is only dropping 0.17V
The problem is a combination of the current drawn and the polyfuse, leading to a voltage drop of 0.33V in the polyfuse (and 0.17V in the power cable).
A powered hub will remove the current drawn by the USB devices which will reduce both voltage drops.
I have a feeling that the polyfuse has been over-worked in the past or has always been rather high resistance. I think they changed the parts for a higher current limit at some point because the early Pi's tended to drop a lot of voltage in the polyfuse. It might have a maximum inactive resistance of 0.45 ohms, nearly half a volt of voltage drop per amp -- or 0.32V of drop for 700mA. (See
viewtopic.php?f=28&t=58359)
Using a powered hub will drop the current down to about half of that: 0.08V in the lead and 0.16V in the polyfuse; a total of 0.24V. So the Pi will be getting 4.76V -- still low but it should work.