Paok was not outsmarted, Paok had no choice whatsoever in the matter in weather Prijo would leave or not. The clause of 10 million turned out to be too low. Once a clause like that is triggered the team has no say. Also Paok is playing with 60-70 ish something million.
Paok may also dominate the next few generations of Greek league not because the league is worse off but because the Savidis actually invests heavily in the team, not just the Main team, but also the infrastructure; youth teams; training grounds, scouting young talents etc, and it shows as their pretty much dominating all age groups across all leagues. Weather or you like it the future may very well belong to PAOK even if the rest of the league gets back on track.
And your mentioning past results, even though Paok's team is improving every year, and is essentially a team that is still being built. Savidis has European aspirations, he knows that there is more money in the CL, even potentially an extra 40 mill for qualifying (that what Basel gets). Paok is a way different team then what it used to be.
All your arguments revolve around the fact that paok never qualified for CL and yet we very know the potential of the team, but we also know the reason why it failed in the last year qualification (benfika ain't exactly a push over, their marketing deal is more then the whole greek league combined). Paok players couldn't keep up with so many matches at that level, conditioning was poor and a poor defence. Once that issue is resolved we may be seeing a very different paok.
However most of the league is indeed hitting the shitter, hopefully, Aek at least will get back on track, and Aris will sort itself and continue with good signings, so that we will see some competition next year. Hopefully, Marinakis will invest in his team inorder to keep up with Paok, and not give up. So that atleast the league becomes more interesting to watch.