Graham Dorrans from WBA would be a cheaper (less than 10m probably) and better buy in my opinion. Had an outstanding year in the championship with 13 goals and 19 assists in 42 games. Just like AJ, I think he'd easily adapt to the premier league. Danny Rose from Tottenham looks like a good prospect mid who can play all mid positions but excels at the wing. An England U21 as well. I'd even prefer David Bentley over Milner.
No, money is not an object for us at the moment but pride and reputation is. If this deal goes through, we'll have every club in the world believing they can hold us over a barrell and force us to pay 2 times what a player is worth. Milner is simply not worth the amount of money + players being talked about. It's a ridiculous deal we should have walked away from after the 20m bid was turned down.