I agree - either Collins or Omobamidele could be used in that midfield role.
I'm afraid I can't agree with this - the role of the midfield is crucial is defending - the midfielders have to be able to cut out through passes and have to be able to track back with attackers and get into position. No matter how good you GK and back four are, they will be torn asunder if the midfield do not engage with their defensive responsibilities (as @Supreme feet outlined).
To win a game you have to score more than the opposition - it is way easier to win 1-0 than to win 4-3 - if you can't defend properly then you are not going to win too many games. That was the fault with Kenny - he wanted the team to play pretty football but he couldn't organise the defending to stop leaking goals (O'Shea is no different). That is why Hughton is a good option - he starts with not conceding and builds from there (and to clarify - this does not mean that he is a defensive coach - he is not - but he does understand the need to be able to defend and minimise the goals you concede).