I think (and so this is obviously my opinion and your mileage may vary) that the Bruce (and originally Curbishley) issue and Connor were rather related. By the time Curbishley had dicked us around and the approach to Bruce had proved to be somewhat unpopular, time to have any chance of escape was hugely short. So then Morgan made a panic decision that turned out to be bloody awful. Thing is, would anyone else have joined then, as we were suddenly getting cast adrift? I dunno - I obviously wasn't privy to the ongoings of the boardroom that week, but I get the impression it became a "no-one else will come, we may as well stick with TC and hope for a miracle" moment.
Yes, we did get a lot in from Jarvis and Fletcher, that is beyond dispute. However, our income, even allowing for parachute payments had been massively reduced by relegation. It was squad or ground really unless Morgan was to personally chuck the money in to cover both. With that not happening, the budget available was given to Solbakken for the squad. Sadly, bar Sako, it is was largely wasted money. Maybe you could lay the failure to do both by personally investing at Morgan's door, but that was as far as all the evidence indicates, never part of his business plan.