He's playing a dangerous game, but he's always been adept at playing everyone around him. As long as he brings results he won't be sacked, but he's making it so if he ever struggles there won't be an eyelid batted. He seems to firmly have all the players not named Canales, Benzema and Pedro León at his side, which I guess it's what matters and why he's doing all this.
Completely unrelated, but have you seen this?
http://en.wikipedia.org/wiki/2010%E2%80%9311_La_Liga#cite_note-20
Marca has awared Pepe's goal from earlier in the season to Cristiano Ronaldo, keeping him ahead of Messi for the Pichichi. You'd never guess Marca was a Madrid paper, eh.