Exactly. They were overhyped after signing Zlatan and are being overhyped once again after a 1-0 against a clearly struggling Inter. Brescia would have achieved the same result two rounds ago had it not been for Eto'o's imaginary PK, in fact Brescia had arguably more opportunities and shots on goal than Milan. The Inter defense had just as much trouble dealing with Carraciolo and Diamanti.
Depends on the context you're reading it in. If you're looking at it in the serieA 2010/11 context, then no matter how average the midfield and the defense is, they can still win it.
In Ronaldinho, Pato, Zlatan and Robinho they have so much quality up front, that all they need to do is to put more muscles in midfield and win matches in Italy.
My biggest hope for Milan not to win it is Berlusconi. I hope he won't like the midfield consisted of Gattuso, Ambrosini and Flamini and he'll force Allegri to play an attacking central midfield with Pirlo and Seedorf in it, as he already did 2-3 times this year.