You really shouldnt just copy and paste off the Kenny Dalglish page of wikipedia, it does your post no credit.
Dalglish is also one of only 3 managers ever to win the league with different teams, or was he an awful manager when he won the league with Liverpool and Blackburn? Was he an awful manager when he chose to sign Peter Beardsley? or Aldridge, or Barnes? Was he an awful manager when he pulled Mcmanaman into the first team and Redknapp? Was he an awful manager when he got SAS for Blackburn?
I remember very well watching both Liverpool and Blackburn under Dalglish and both played decent attractive effective attacking football, odd for someone under the control of an "awful" manager.
O'neill is definitely not the right person for Liverpool and of all the touted names linked with the job his is the absolute last one I would want. (I'd happily take Rijkaard or Deschamps and would even be intrigued about Villa Boas).
As you fully expect Dalglish to get Liverpool relegated, how about you make a wager on it? As you fully expect him to and I fully expect him not to get Liverpool relegated, it would suggest that we are both certain we are right, so lets say £380 , a tenner for each match of the season. Sounds fair, we'll see which one of us is right at the end of the season.