Compare it to the other squads in the division. The biggest difference between Middlesborough, Sunderland, Hull, Burnley, Palace, Bournemouth and Watford are the quality of the managers. Look at the job Dyche has done. Keane and Defour are decent players, Heaton is solid and Gray & Hendrick is good. Besides that the team screams Championship (and Brady is quality, but joined in January). But Dyche has made players like Lowton, Boyd, Ward, Mee play really well. Similar at B'mouth. The only players who would walk into the Sunderland team would be Wilshere and Arter. Howe has helped players like Francis, Cook, Daniels etc punch far above their weight.
Creating a team that's hard to beat and can score a few on the break shouldn't be that bad. Setting up with Pickford, Kirchkoff, O'Shea, Kone, Ndong, Januzaj, Khazri, Borini and Defoe isn't a bad squad to start with. Even players like Billy Jones, Watmore and Larsonn can do a job.
The transfer market excuses really are useless as well. The loan market exists for a reason. You could find a lot of quality in midtable France/Germany/Serie A that would love to be on the wages that Anichibe/Pienar/Gibbo, and what he was thinking buying McNair and Love for...