Milan have certainly declined in Europe of late, age and lack of pace is much more prominent, though they still had enough to get past Arsenal last season, but they certainly don't look great. Inter are worse but their decline has been steeper, finances are in a state.
Think Juventus play a better game though and Udinese and Napoli are still rising stars I think. (may have misremembered who got into champions league however)
The guardian are running it in their roundup of rumours though, it's basically all the crap stories in one place, one is sometimes true.