I think it's stretching to say that Chilwell had a dreadful season. He had an okay, mostly average season with enough good games and highlight clips to make you understand why team's are interested and why stupid teams will spend silly money on him.
As far as 'better' full-backs go in the league, I'd say Robertson, Digne (who was pretty middling himself) and the underrated Ben Davies were all better (Davies may be an unfair comparison, due to Aurier's ineptitude defensively Spurs often employed a lop-sided defence where Aurier could bomb forward and Davies tucked in as a third CB).
On Douglas Luiz, other than that screamer in the opening weeks he did very little... until the restart. I was pretty astonished at his performances and his numbers following the comeback and he had a big big hand in keeping Villa in the division. Go and look at most of the key metrics you'd want in a progressive defensive midfielder and in isolation of those 9/10 games, he looks amazing, more than a £25m player. The question is, will he actually keep that up over a whole season and will he actually get the minutes and the opportunities at City?
My thoughts are they're probably signing him knowing he can bring some FFP money in down the line. Or Pep has realised that he can't turn Rodri into the smooth-passing destroyer he'd hoped (very Pep to abandon a project player).