Its not though is it. If the club blindly pay whatever a club is asking (and inflating) we will always be paying way above market rate. The club have to retain the strength to walk away.
Making a bid that you know will be rejected while competing against a club that have identified him as their number 1 target, is pointless. Our bid was only going to make Arsenal bid more - because it wasn't really that different. More than happy for the club not to move from their valuations and walk away - don't see the point in bidding when it's not going to be accepted.