The demise of Chelsea is over egged. They have a few players like Drogba, Anelka, Lampard on the wrong side of 30 ... the same way we have with Gerrard, Carra, Kyut, Maxi, etc. Chelsea just done the double, and a bad month doesn't make them shite.
The signing of Luiz is huge for them as well. Wouldn't be suprised if they still contested for the title (if they beat United twice, they're only 3 points behind them) and went far in the champions league.
It's a good move for Torres. We're still rebuilding, and that's going to take a good few years.