I think it's harsh to blame Hodgson, he has no financial backing, the team is significantly weaker than say 2 years ago (no Alonso, no Hyppia, no Arbeloa, no Mascherano) players like Gerrard, Carragher etc are that bit older.
There is obviously some sort of morbid atmosphere at the club and you can't really blame the new manager, Kenny Dalglish hanging around muttering about how he would have taken the job probably doesn't help. I think a lot of the blame lies with Benitez, his bungled idea of selling Alonso and replacing him with Gareth Barry (ffs?) started this decline. Alonso had a good season after that but he always knew his future was away from Liverpool and ended up at Real. I don't know what Benitez was doing with the whole Robbie Keane thing, he apparently didn't want him, but he didn't give him a chance, instead he would bring on wasters like El Zahar, Babel, etc.
He let too many of the seasoned pros leave. For instance Hyppia (again spectacularly badly handled by Benitez who left him out of the CL squad) was farmed out to Leverkusen, where last year he was exceptional - Liverpool would be in a much better situation if they had him to call on as a back up for an erratic Carragher or an unconvincing Kyrgiatos...
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