I think it's more to do with that they can't all play together. Take Real Madrid for example, they had a hugely top-heavy squad for the best part of 10 years now and they are expecting results! The Zidane y Pavon tactic never paid off; Buy one big player and promote one youth player. Not only did they bring in ATTACKING players of the highest quality, they failed to do the same DEFENSIVELY, unlike Barcelona who've got a brilliant mix of both!
Liverpool have lost their way since Alonso and Mascherano left, our big defensive rocks, coupled with the aging of Carragher, the too attacking minded Johnson, mediocre Soto and Agger as well as Konchesky and Aurelio is never fit, our defensive as a whole is probably the worst it's been since the Premier League started and we've had Rigobert Song! Midfield wise we've got deadwood and/or mediocre players in Lucas, Poulsen, Raul Merieles and Maxi. Same with the attacking stretch; Babel. Torres can't play as lone striker. I can't speak much about the likes of Jova, Sheva and the other newboys as I've not seen them play.
The only players I can see worthy of Liverpool are Reina, Gerrard, Kuyt, Cole, Torres and maybe even Ngog!