For what its worth, I think Sterling will improve and will be a great player. I don't think the price tag will affect him. He carries a sort of confident innocence that gives me the impression things like this float over his head; seems the type of player who is unaffected by this type of thing, and for what it's worth, I think he's doing the right thing. Why should he be bullied into staying somewhere he doesn't want to stay? Maybe his ambition is bigger than staying at Liverpool. He's not from Liverpool for a start, so maybe what he was really angling for was a swoop from a London club. Problem is Man City now put too much money on the table, and will probably hijack that particular plan (if it was ever a plan). His attitude problem doesn't to me seem to stem from the same place as that of a Nile Ranger or Ravel Morrison; it seems to be that he doesn't fancy being pushed around, and wants to do something simple like move jobs. But is being blocked on all sides. I don't particularly rate him any higher than others of his ilk (though he's clearly an excellent player when on form), but can see him pulling through this, and getting better. Think Sterling (or someone) is making some quite bold decisions.
Managers don't always know what's best for an individual, and on a much smaller scale, look how Ian Holloway (in conjunction with others involved, like Paul Ince) held back the careers of Matt Phillips and Tom Ince by jealously guarding them at the sinking ship that was Blackpool. They either barred them from moving, or touted them way too high, and now Ince looks likely to sink back to the Championship, after he couldn't even get in the Hull side. Phillips admittedly finally came good at QPR, but is back where he came from too. Am certain that would not be the case if they had come to us - Phillips would probably have an England cap by now.