Saw this guy live twice so far (been following Palermo since two of the lads from our international team joined them), and I have to say he's a cracking player. He has superb passing (easily on the level of the likes of Xavi and Iniesta), connects very well in attack and makes some incredible first touch actions. Incredibly creative in both attack and defence (sometimes reminds me of Ibrahimovic, because he actually tries to do fancy stuff even when its not neccesary).
Definite buy for me, as long as Palermo keep it real. 25m seems reasonable since I sincerely doubt they are gonna keep hold of him for much longer after the big italian clubs come knocking in the summer. Might aswell cash in.
About Ilicic though... I used to live in the same town as that guy, so i've been keeping track of him since he was 16 or so. He did seem to find some good form in Palermo after joining them from Maribor but I seriously doubt hes gonna keep it up. His international form has been pretty.. well, shit, to be fair. Liverpool seem to be interested in him, and I think he wouldnt even play good enough for them, much less City. Besides, he just joined them so I doubt they'd let him go for anything less than 15m, 14 of which he's not worth.