Gerrard and ALT not getting on is news to me. But so what? Tough luck, deal with it. Not everyone can be best mates. If ALT thinks he can claim a place in the team however, then he's got to get back to Earth. I like him, I think he has a great future, but he's not good enough to be 1st pick yet. This is the year when he should get ~10+15 games. 10 starts, 15 subs. Spice it up with a short loan deal and hopefully he'd be ready to fight for a more high profile role 05/06. Should he get more, great. Less, no worries. Next year is when it really begins to matter.
I reckon ALT should be kept. Don't like the idea of him going on loan, not just because we'll be short of options in attacking midfield. If we see him as a striker, I'd still keep him ahead of Pongolle and Mellor, because ALT is different to MO, MB and DC.