Whether we punched above our weight or not there is an element of luck as well. Maybe the examples of Harry was part of that luck, but we should always go into a seasons expecting to win the title and some trophies. Without hope we just become a West Ham or QPR or Southampton or one of the other midtable teams. I don't believe it is impossible for an outside (outside the top 4) to come in and get a good run going and actually threaten to win the title. Blackburn was one of the few to win the Premiership and look where they are now.
The thing that I find rather alarming is that Ars*nal seem to have re-discovered their form, their better players are all doing well. Considering that Chelsea, Man City & Man U don't look like falling out of the top 4 anytime soon, that leaves no room for us in the foreseeable future, UNLESS we can up our game significantly.
To go back to the subject of this thread, then I would say YES it is a necessary evil. Surely, any European football is better than none, and there is always that extra CL place on offer if somehow we can win the Europa. In my opinion that is going to be easier than getting into the top 4 PL. For a start the level of opposition must be lower than PL and there are half the number of games to play.