I agree with you, the squad has got stronger, but the division just gets tougher and tougher. Newcastle are better than Burnley and 'brough, and Norwich have just given a false impression of their chances.
And strong squad or not, it's still difficult to get the results we need to finish 2nd.
Before the Derby game we just needed a win and a draw (or even a loss followed by a win) - that was a pretty decent chance. There's still a very long way to go this season.