Little activity in transfer market historically = season ends with players not performing to expected levels, injuries, same usual mistakes, desperately fight for 4th position by April. Repeat each year. No progress.
To compete in this era you need world class players. On the rare occasion they become available, you compete for their signature. You don't instead stop at 40m+1p, or say no to Fabregas.
This is a silly comment, I'm afraid. Ramsey has had a break-out year and provided us with important goals. He is not a proven world class player with a consistent record of dominant assists. Cazorla will be 30 this time next year and is himself inconsistent, whilst Ozil turns up when he feels like it.
We don't need Fabregas this season, but refusal to resign him signals a continuing of a trend that has failed us over the last few years and led to inevitably sad results for us. Would we be a stronger side with him in the lineup? Absolutely, especially if it means either Ozil or Podolski loses their spot.
It's fine that you want the team progress but look at your competition. Who do you see yourselves being able to overtake in the top 4? Obviously Liverpool are the easiest targets, but in order to progress to where you want to be, you need to compete with City and Chelsea, who have endless budgets. Progress would mean winning the PL or the CL against monstrous clubs and those with bottomless buckets of money. Arsenal, in their financial situation, are not going to suddenly start competing with those other clubs.
I think Arsenal fans are more worried because Spurs, Liverpool, Everton and Southampton are showing the ambition required to climb, while they are stagnant. As I said above, it'll be really hard to fight that stagnation. If Liverpool or Spurs climb into a consolidated top 4 spot, we'll be in the same position as Arsenal in a few years because we'll be met with the same hurdles.
You overrate Fabregas' abilities. He isn't world class, no matter how many times that phrase gets used.