I agree with most of what you say - none of it is in doubt now as the fraud that Wenger has become is clear to see to the whole footballing world apart from our board of directors.

I disagree with you on the quality of our players. The Invincibles were a team of "footballing" brains, especially as an attacking force where this is most needed. We never replaced the likes of Henry, Bergkamp, Pires & Llundberg in a clever footablling sense. Who do we have now who makes the right decision in the final 3rd of the pitch 70-80% of the time - possibly only Ozil. These guys made the right decisions most of the time. How did we ever think that wide players without a clue what to do when in the final 3rd like Walcott & Chamberlain were ever going to deliver what we had with Pires & Freddy.

In my opinion, Wenger's fall from grace was down to 2 things - Barcelona & Abamovich.
Due to his ego, he wasnt happy with the plaudits that Barca had worldwide for their wonderful football. He tried to emulate this by replacing the power & drive needed in the Premier League ( like what we had with Viera & Petite ) with the likes of Fabregas & Denilson. He bought small defenders who supposedly could pass well but unfortunately were far too weak for the combative premier league. He tried to be Barca but naive to the climate we play in & very naive with the type of player he bought in to do so - we never unfortunately bought anyone with the class of a Messi, Xavi or Iniesta, so it was never going to work.
On top of this, at roughly the same time, Mr Abramovich decided to get of of Russia with his ill gained billions & then subsequently ruin the game of football. The thought of buying your way to glory was something Wenger despised & I totally agree with him but unfortunately, if you want to compete you cannot hide behind the "poor us" story & be content instead to be a top 4 team that returns large profits to your owners.
With all the money they had - they could only have 11 players on the pitch. When you think of the Chelsea legends of these times, you probably come up with Terry, Lampard & Drogba - not really top world class players in my opinion. With the finances we had available we could & should have bought players to compete. The pressure that Abramovich created on other teams meant that they had to find better managers, better players etc - this is where we got left behind because we had a manager still basking in former glories & hell bent of proving that his way was the best way. It certainly is for share holders but not for us fans.