From what you've said above it appears we are on the same-ish wavelength. What I know for sure is that we couldn't afford him in a month of Sundays! I assume Readings new owner has a lot of cash to throw around.
I would definitely have taken him back, you cannot blame him for moving to Palace when he did. From what I gather he wasn't overly pleased about being shipped out, as it adds a lot of time to an already hefty commute. However he'd have been nuts to turn down Reading's offer and is certainly not...
He is on a LOT of money at Reading, far more than we pay any player and more than he is on at CPFC. Reading have offered to double this wage if they get promoted (unlikely I know) if the deal were to become permanent - which is expected. The club didn't 'miss out', we simply don't pay those sort...