Hodgson is not the problem, but I do think Liverpool fans might have a tough couple years ahead of them. Falling out of the top4 is probably a bigger problem in England than in any other league. Liverpool is Liverpool, but how long will they be able to draw that much attention from the public disproportionate to their athletic performance while a bunch of other, supposedly "lesser" clubs surge ahead of them? 2 years, 5 years, 10 years? The longer it takes to turn their fortunes around the more difficult it will be to get back on top.
Tradition alone doesn't buy you success, especially not in the era of the Abramovichs and Arab Sheiks.