The Galactico system is about getting the biggest names so that more merchandise can be sold, more money can be made. So the players' style of play and all aren't really being put into consideration thus the decline of RM's power onfield.
Despite all his flaws, Cassano is a victim of the Galactico policy. Some of his best years have been wasted in RM while achieving nothing. Then he got shut in the freezer.
I'm not sure about Fabregas but Kaka sure isn't going to leave AC Milan even if it's Barca knocking on the door. I'm sure of that.

1. Capello isn't suitable for madrid's job cos he's unfogiving: Cassano, Emerson and Becks suffered under his hands.
Ronaldo suffered too.
I think it totally rocks that Ronaldo's performing so well in AC Milan now. It's like a tight slap to Capello and RM's face.

2. Give youngster more chance to impress. They have talented youngsters mind you.
3. Abolish Galactico policy (I think it's already taking place)
I think Capello is actually trying to eradicate that policy out... But at the same time he's simply kicking out some of the wrong people.
He got rid of Ronaldo as he wished but the guy is now performing really well, kicking in goals for AC Milan nonstop. Capello also tried his best to torment Beckham but Becks turned out to be the person who saved his ricebowl, at least temporarily.
He also got in promising kids like Gonzalo Higuain and Marcelo. But the team's not-so-good performances isn't going to ensure his reign. Not to mention that Real fans never wanted him back in the first place.
Overall and all, I think Capello stinks.
Also, do I sense a tinge of jealousy around here when it comes to Beckham? Although he does have many other commitments outside of football, some people speaks as if he doesn't go for training in favour of those commitments, and as if he's lacking in professionalism which isn't true at all.