He has a deep scouse heritage, he qualifies for the home grown rule, he's older and more experienced then Gulacsi, Hansen and Bouzanis, and Cavalieri has been sold. That leaves us with......
Pepe
Jones
Hansen
Gulacsi
Bouzanis
You can't include Charles Itandje as he will never play for us again, whether on the books or not, so to say it is a waste of moeny is rather baffling. We now have a good back up for Pepe that qualifies as a home grown product which means we can have one more non home grown player out on the field.
And as far as why he has signed with Liverpool, I can tell you if I was him with his heritage and being a fan, I would jump at the chance to play for Liverpool, even if it was only a couple of games a year. Lets face it, he was with Boro!