It was okay for them to lose MvB, Gustavo has done a good job so far. He does play in midfield and inter changes with Pranjic at LB.
And you right, they are missing the quality CB, they all thought that a highly rated Breno could fill the void left by Lucio but that plan backfired and his progression has been hampered by injuries and inconsistency since the time Klinsman was there.
They are look at Neuer, Kjaer, Hummels and a LB for the summer so things should be interesting.
Unfortunately it is an important criteria, along with that they want a big time manager. IMO that rules out many foreign managers and rules out the likes of Martin Jol and Michael Laudrup.
I think it will be between Rijkaard, Matheus and Hitzfeld, the latter 2 have the advantage being fan favs. As a dark horse it could be the return of Felix Magath who will also be leaving Schalke. Possibly a reunion for Magath and Neuer at Bayern
I agree that Inter are in form but lets face it, Leo is tactically/defensively inept. LvG is pretty much the same but at the moment Bayern have the lead and Inter have to chase. The same teams met at the San Siro and Inter couldnt do much against Bayern, the Germans were better and were unlucky not to put the tie to bed in Italy.
In the CL one should forget the teams league form, it counts for peanuts in the knockout rounds of Europe. On that night its all about scoring goals for both teams but history and an away goal are on Bayern's side so they are clear favorites.