The thing is our reticence to pay the agent fees and unreasonable transfer fees isn't due to some morality or sense of what should be but simply due to fact the bean counters will only allow (x) amount of money to be spent. This is all down to risk management of investment. We are a business whereas the likes of city/psg/chelsea are play things of owners who have unlimited funds.
The glazers will never allow us on the same financial footing as those clubs, we have to be smarter.
Equally the business model rides on the back of CL football and trophies. Lose those and your TV and prize money falls fast.
Liverpool cope? Yes, they do, but with about half our revenue. The sponsorships won't dry up overnight? Of course not, but new deals get lower bids (particularly relative to other top clubs) and old deals start to run out.
Work smarter? Of course we must. Simeone at Atletico, Klopp at Dortmund have found ways to create teams (if not squads) that are competitive with much wealthier rivals. They're fighting an uphill battle against having their best assets stripped, but they're doing it with the ability to get the best out of whatever players they've got, as well as a strong playing philosophy.