I do agree in part, I don't see why with our resources it should make us a power house of European football, even English football is getting harder. The billionaire clubs don't need the owners money anymore to spend big. The English league is a lot more competitive and I think that is why we are performing worse in Europe as you cant coast (perhaps Villa aside) through games anymore. Its hard to rotate players when you have to play to your best to get the points. Bayern, Barca, Real can coast through games. It isn't as physical and there resources far outstrip anyone else in those respective leagues.
Personally I don't care if we dominate or not, unless we are full of superstar players like Vieira, Henry, Bergkamp, Pires etc then I actually prefer competitive football.... as long as we still win. although there were times when we had those players that we had to have a player sent off to make the game a bit more even.