Hmm, you're in a better position to judge obviously, but everytime I've seen Torres over the last few years he's looked a shadow of the lightning quick player we first saw in the PL. Obviousy he's no Berbatov, and he still has speed, but just not that ridiculous speed he once had. He used to constantly burst away from defenders over and over and leave them for dead. He just doesn't, or can't do that anymore. Defenders seem to catch up with him pretty easily nowadays.
Personally, I don't think its a mental thing with Torres. I think his body just can't do the things he wants it to do anymore.
Who do you reckon in Spain would take him (and be able to pay his wages)? Obviously Real/Barca wouldn't, and I don't think he's good enough for Athletico anymore.