It wasn't a humiliation, it was a joke. We beat them twice in the league that year, 1-0, both times Gavin Peacock got the winner, then he hit he bar in the final, at 0-0, then after half-time David Elleray gave Manchester United two penalties that never were (which he has since gone onto say were his biggest mistakes in football), and we couldn't come back from that. To use a 'mockney' phrase - we woz robbed.
I'm not going to come on here and kid you that we weren't but we did have a couple of enjoyable cup runs in 1994 and 1995 even if we seemed to yoyo between 11th and 14th in the league every year.
A Walkeresque investment it wasn't. I can't speak for player wages, but in terms of expenditure, our net spend between 1990 and 2003 was £4 million LESS than yours and much less than some of the other teams knocking about at the top of the table, Leeds being the best example.
You're forgetting the one very important signing at that time - Glenn Hoddle as player/manager. Gullit wouldn't ever have come if Hoddle wasn't in charge. Hughes was probably a different case as he was a boyhood Chelsea fan but then with Gullit there, the knock on effect was clear and as our league position improved, and so did the quality of players who came to the club. After Gullit, Hughes, Vialli (who became the next man in charge), Di Matteo, Zola, Petrescu and Lebouef, there came Poyet, De Goey, Lebouef, Flo, Desailly. None of these players cost a great deal, half of them were free, and some were just shrewd signings - Flo cost ten times less than Lee Bradbury.