Personally I think all those insane Madrid bids are just Marca-made BS.
And despite the unquestionable fact that he is a great player, I fail to see where he'd fit in Madrid's puzzle, particularly given his style is already too similar to Cronaldo's, and the system Ancelotti wants to implement.
It reeks a bit of "let's buy Beckham and play him in holding midfield" syndrome. Probably not as serious, but I predict one of either Bale or Cronaldo would be playing as striker by the end of the season, which would be detrimental to either one given they thrive on having space to run into.