I remember being absolutely delighted when we signed Fowler, in hindsight it just didn’t work out and did serious damage to what had been a club in an upward trajectory prior to his signing.
@petrusha kindly pointed out on one of my posts on the subject, that Keegan had threatened to resign if the deal wasn’t signed due to Bernstein’s (correct) apprehension over the fee & wages involved, given his obvious fitness issues. Not withstanding he clearly wanted to stay at Leeds having initially rejected us. Shaun Goater was forming a fine partnership with Anelka just prior to his arrival.
Ultimately, it led to Bernstein resigning and a policy of the club committing large wages to what were essentially washed up players Fowler, McManaman, Bosvelt (did okay) & so on, as we had no transfer kitty & were living on a shoestring. Contrast that with the likes of Distin, Anelka, Foe who came in during the summer of 2002, it’s night and day.
To your broader point though, yes, I think we could well have been relegated. Pearce secured the job full time following a good run that got us to the UEFA Cup show down with Boro, and if we’d of gone on a long-run having lost SWP & being skint, we’d of gone under imo. That 2005/06 season fell apart when Pearce lost the dressing room after going out of the FA Cup QF to West Ham in March. Adding a European run to that would of been terminal.