Can't disagree with anything that's been said. Downing wouldn't have been in my Dream XI, but he brings width on the field and depth to the squad. Plus, the Villa fans I've spoken to said he was like a new player this past season, and won Player of the Year (over Agbonlahor, Young etc).
Regarding the prices, I think we have to come to terms with the fact that we are going to be paying over the odds for a while. New (or at least recent) owners will always lead to a premium being demanded. Plus, as Tenorsaw said, English talent is inflated now, especially with the new Financial Fair Play rules taking effect soon.
I'm really excited about the potential formations that Dalglish might play.