Problem is mate you seem to be putting all of the blame on Levy. I've mentioned before, Poch was the one who vetoed a number of moves.
Levy isn't perfect by any means but the notion he's not backing Poch, or not willing to back Poch, is unfair. He may not be telling Poch we can sign ten £50m players but I highly doubt Levy has said there's zero to spend on signings these past couple windows.
Poch is as much to blame. I think he's been overly cautious with who he wanted but that approach has proven costly. Let's not forget that before this poor run of form, Poch was literally saying how everyone needed to show some faith and belief in the squad because things were going well. Now we've hit a bad patch, suddenly the squad is arrogant and lacking mentality etc... He's changed his tune massively within the space of about 4-5 weeks.
I think your post has a lot of truth to it but what I also think it does it most likely exposes that Poch's standards are above those that we can afford.
Our transfer record to date is somewhere in the region of £42m for Davinson - a good defender who is still learning his trade and is not an automatic starter. So even then, at £42m we are still looking at players who are developing and are not automatic first team starters or world beaters!
Let's say for arguments sake the clubs current maximum transfer figure sits at £50m. What does that buy you in today's market? For me, it neither a top tier player nor lower league dross. It's somewhere in the middle, and we haven't even touched on wages which is an entirely separate issue.
Poch is saying no to players in that range because he doesn't want a squad filled with more deadwood that doesn't add any value to the squad and can't impact on games. So there in lies the problem.
Poch has made us into a Champion League team that can't compete on the transfer market or get players of Champions League quality. His standards have raised the bar yet the club's transfer policy has not managed to keep pace. So he's forced to develop players which takes longer whilst utilising a smaller squad.
This just goes to highlight how critical our new stadium is, as it needs to generate a ton of income to allow us to restructure our wages and transfer policy. If not, where do we go as Joe Lewis clearly doesn't want to inject his own capital into the club. The next year or so will reveal where we as a club are headed.